XRP News Today: Ripple's Regulated Stablecoin Pilot Challenges Legacy Banking Systems

Ripple Labs has launched a pilot project with Mastercard, WebBank, and cryptocurrency exchange Gemini to test the use of its U.S. dollar-backed stablecoin, RLUSD, for credit card settlements on the XRP Ledger blockchain. This initiative marks one of the first instances of a regulated stablecoin being applied to fiat credit card transactions on a public blockchain, aiming to optimize speed and reduce costs for users Ripple Labs Tests RLUSD for Mastercard and Gemini Credit Card Settlements on the XRP Ledger Blockchain. WebBank, which issues the Gemini Credit Card, is spearheading the experiment to evaluate the feasibility of RLUSD for settlements Ripple Labs Tests RLUSD for Mastercard and Gemini Credit Card Settlements on the XRP Ledger Blockchain.

The collaboration aligns with Mastercard's broader strategy to integrate regulated digital assets into its payment infrastructure. The company has previously adopted stablecoin settlements in regions like Eastern Europe, the Middle East, and Africa, and now seeks to expand this model to the U.S. market Ripple Labs Tests RLUSD for Mastercard and Gemini Credit Card Settlements on the XRP Ledger Blockchain. Ripple President Monica Long emphasized that the project could redefine traditional banking systems by replacing slow, costly processes with near-instantaneous transfers via blockchain technology Ripple Labs Tests RLUSD for Mastercard and Gemini Credit Card Settlements on the XRP Ledger Blockchain. RLUSD, which operates under the New York Trust Charter and is backed by cash reserves, has already surpassed $1 billion in circulating volume Ripple Labs Tests RLUSD for Mastercard and Gemini Credit Card Settlements on the XRP Ledger Blockchain.

The pilot leverages the XRP Ledger's capacity to process up to 1,500 transactions per second, positioning it as a viable alternative to legacy systems for high-volume financial activity Ripple, Mastercard, and XRP: A New Phase of Global Payments. For consumers, this could mean faster cross-border payments and reduced waiting times for settlements. For institutions, the integration of RLUSD offers improved liquidity management and lower operational costs Mastercard to Ripple and XRP Holders: “Excited for What’s Ahead”. Mastercard's involvement signals growing institutional confidence in blockchain-based solutions, particularly as regulatory frameworks for stablecoins evolve globally Mastercard to Ripple and XRP Holders: “Excited for What’s Ahead”.

The Market reactions to the partnership have been mixed. While XRP's price recently rebounded to $2.32 amid a $500 million funding round led by Citadel and Fortress, the token remains down nearly 40% from its annual high XRP Price Forecast - XRP-USD Jumps to $2.32 as $500M Funding and Whale Retreat Fuel Recovery. Analysts attribute this to broader crypto market volatility and technical headwinds, though institutional inflows and declining exchange supply suggest long-term bullish potential XRP Price Forecast - XRP-USD Jumps to $2.32 as $500M Funding and Whale Retreat Fuel Recovery. The success of the RLUSD pilot could further bolster XRP's utility, as the token's value increasingly hinges on real-world adoption rather than speculative trading XRP Price Forecast - XRP-USD Jumps to $2.32 as $500M Funding and Whale Retreat Fuel Recovery.

Regulatory scrutiny remains a critical factor. The Bank of England recently proposed temporary holding limits for systemic stablecoins, capping individual holdings at £20,000 and business holdings at £10 million, underscoring concerns about financial stability and unregulated use Bank of England Confirms Plans for 'Temporary' Stablecoin Holding Limits. Meanwhile, South Korea and Japan are advancing their own stablecoin frameworks, with banks and fintech firms vying to lead the market How Samsung, Kakao, and Naver Are Powering Korea’s Stablecoin Push. Ripple's RLUSD, however, is designed to comply with U.S. regulations, including the New York Department of Financial Services' trust charter, which provides a legal foundation for its adoption Mastercard to Ripple and XRP Holders: “Excited for What’s Ahead”.

Ripple's strategic shift toward utility-driven blockchain solutions reflects a broader industry trend. The company's investments in custodial services, corporate treasury tools, and new stablecoin issuance position it as a multifunctional financial platform Ripple Labs Tests RLUSD for Mastercard and Gemini Credit Card Settlements on the XRP Ledger Blockchain. With the XRP Ledger now supporting partnerships beyond Mastercard—including central bank digital currency (CBDC) projects and cross-chain applications—Ripple aims to cement its role in the next generation of global payments Ripple, Mastercard, and XRP: A New Phase of Global Payments.