XRP News Today: Regulated Blockchain Pilot Aims to Transform Credit Card Settlements with $1B Stablecoin

Ripple, Mastercard, WebBank, and Gemini have launched a pilot program to settle fiat credit card transactions using RLUSD, a U.S. dollar-backed stablecoin issued on the XRP Ledger (XRPL). The initiative, announced at Ripple's Swell 2025 conference, aims to demonstrate how blockchain-based stablecoin settlement can enhance the speed and transparency of traditional payment processing while adhering to regulatory standards.

The pilot involves integrating RLUSD—regulated under New York's Trust Company Charter—into Mastercard's settlement framework. WebBank, the issuer of the Gemini Credit Card, will use RLUSD to clear and settle card transactions between banks and payment processors on the XRPL. If successful, the project could mark one of the first instances of a U.S. bank using a public blockchain and stablecoin for fiat card payments. RLUSD, which surpassed $1 billion in circulation in late 2025, is fully backed by cash and short-term government securities, positioning it as a compliant digital asset for institutional use.

The collaboration leverages the XRPL's low-cost, high-speed transaction capabilities to streamline credit card settlements. Traditionally, such transactions can take one to three days to clear through conventional banking systems. By replacing these processes with blockchain-based settlement, the partners aim to reduce friction and costs, particularly for cross-border transactions involving multiple intermediaries. Monica Long, Ripple's president, emphasized that the XRPL's decade-long operational history provides a tested foundation for this use case, stating the goal is to "bring blockchain speed and efficiency into the back-end of a payment flow consumers already know—swiping a credit card."

Mastercard's role centers on integrating stablecoins into its global payment network while maintaining consumer protections and regulatory compliance. Sherri Haymond, Mastercard's Global Head of Digital Commercialization, noted the company's focus on bringing regulated digital assets into the financial mainstream. Gemini, which previously launched an XRP-branded credit card with WebBank, is expanding its crypto-linked payment offerings. The pilot builds on Gemini's existing credit card program, advancing the use of stablecoins for real-world consumer transactions.

Regulatory compliance remains a cornerstone of the initiative, according to Coinotag. RLUSD's adherence to New York DFS requirements and its custodial arrangement with BNY Mellon ensure institutional trust. However, the pilot must secure final regulatory approvals before full implementation. Once cleared, the partners plan to onboard RLUSD to the XRPL and integrate it with Mastercard and WebBank's systems in subsequent phases.

The project aligns with broader trends in blockchain adoption for financial infrastructure. Mastercard has previously explored stablecoin settlements and tokenized transactions, while Ripple's RLUSD aims to bridge blockchain and traditional finance. Analysts suggest that if the pilot succeeds, it could set a precedent for regulated banks to adopt public blockchains for settlement, potentially reshaping ACH and SWIFT-like networks.

For now, the pilot represents a cautious but significant step toward mainstreaming blockchain in payments. As Jason Lloyd, WebBank's CEO, explained, the partnership demonstrates how banks can "bridge blockchain technology and traditional financial systems" without compromising security or efficiency. The outcome may influence future regulatory frameworks and accelerate institutional adoption of digital assets in payment ecosystems.