Ripple has announced a collaboration with Mastercard, Gemini, and WebBank to run a pilot program for settling card payments using the RLUSD stablecoin on the XRP Ledger (XRPL). The initiative aims to evaluate the use of blockchain for settlement, a process typically handled by traditional banking systems.
RLUSD is a stablecoin issued by Ripple, designed to support faster and more transparent transactions. In this pilot, WebBank serves as the issuing bank for Gemini’s card, while Mastercard provides the card payment infrastructure. Under this model, card transactions are processed normally at the front end, but settlement occurs on XRPL using RLUSD rather than conventional banking rails.
Exploring Blockchain-Based Settlement Efficiency
The current card payment system involves multiple parties and procedural layers, from the merchant and issuing bank to the payment network. This often results in longer settlement times and higher processing costs.
By using a stablecoin on a public blockchain, settlement can be completed faster, verified, and recorded on-chain. The pilot is focused on validating these efficiencies, especially in terms of cost, speed, and transparency.
Adoption Potential and Regulatory Challenges
Despite its potential, card payment settlement using stablecoins still faces challenges, particularly in regulatory compliance, infrastructure readiness, and liquidity requirements. The use of blockchain for large-scale retail payments must also be tested for security, interoperability, and scalability.
If successful, this pilot could serve as a real-world example of how blockchain can be integrated into traditional payment systems. It may also pave the way for regulator-approved stablecoins to be used more broadly across the financial sector.
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