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As of January 2, 2026, the partnership between Ripple and Mastercard continues to progress in its pilot program for settling credit card transactions using Ripple's RLUSD stablecoin on the XRP Ledger.
Announced on November 5, 2025, at Ripple's Swell event, this initiative involves Ripple, Mastercard, WebBank, and Gemini to test blockchain-based settlements for fiat payments.
The pilot, which went live on November 6, 2025, represents a significant step in integrating regulated stablecoins into traditional financial systems, enabling faster transaction finalization compared to conventional banking methods.
By leveraging XRPL's efficiency, the pilot aims to reduce settlement times from days to seconds, addressing longstanding inefficiencies in credit card processing.
Key Takeaways
- Ripple-Mastercard pilot uses RLUSD on XRPL for instant credit card settlements, cutting days to seconds.
- RLUSD, NYDFS-regulated with $1.3B circulation, ensures 1:1 USD backing for compliant transactions.
- Partnership involves WebBank and Gemini, testing real fiat payments on public blockchain.
- Demonstrates blockchain's role in efficient institutional payments with regulatory safeguards.
- Potential to expand stablecoin use in card programs, boosting XRP Ledger adoption.
Background on RLUSD and XRP Ledger
Ripple's RLUSD is a U.S. dollar-backed stablecoin issued under a New York Department of Financial Services (NYDFS) Trust Company Charter. It maintains a 1:1 peg to the USD through reserves in cash and cash equivalents, ensuring full backing and regulatory compliance.
Launched in late 2024, RLUSD has seen rapid adoption, surpassing $1 billion in circulation by November 2025 and reaching $1.3 billion by December 2025. It is designed for enterprise applications, including decentralized finance (DeFi), cross-border payments, and institutional settlements.
The XRP Ledger, a decentralized public blockchain, underpins RLUSD's operations. XRPL is known for its low transaction costs, high speed (processing in seconds), and reliability, with XRP serving as the native token for network fees and security.
Unlike traditional ledgers, XRPL uses a consensus protocol that avoids energy-intensive mining, making it suitable for high-volume financial transactions.
Ripple, the company behind XRPL, focuses on blockchain solutions for global payments, while Mastercard, a global payments leader, has been exploring digital assets to enhance its network.
This pilot builds on prior collaborations, such as the Gemini Credit Card's XRP edition, integrating digital assets into everyday financial tools.
Details of the Partnership and Pilot
The collaboration centers on settling transactions for the Gemini Credit Card, issued by WebBank, using RLUSD on XRPL. In traditional credit card settlements, payments between issuers and acquirers can take one to three days via batch processing through banking rails.
In this pilot, RLUSD replaces these rails, allowing interbank settlements to occur in seconds on the public blockchain.
The process involves onboarding RLUSD onto XRPL and integrating it into existing Mastercard settlement flows, subject to regulatory approvals.
When a Gemini Credit Card user makes a purchase, the front-end experience remains unchanged, but backend settlement between Mastercard and WebBank uses RLUSD to transfer value instantly.
This marks one of the first instances of a regulated U.S. bank using a compliant stablecoin on a public ledger for traditional card payments.
Key partners include:
- Ripple: Provides RLUSD and XRPL infrastructure.
- Mastercard: Leverages its global network for open-loop stablecoin payments.
- WebBank: Issues the Gemini Credit Card and tests blockchain settlements.
- Gemini: Operates the credit card program and bridges crypto to fiat.
Executives have highlighted the pilot's potential:
- Sherri Haymond of Mastercard emphasized consumer protections and regulatory compliance.
- Jason Lloyd of WebBank noted banks' role in bridging blockchain and traditional finance.
- Dan Chen of Gemini focused on integrating digital assets into spending.
- Monica Long of Ripple described it as a step toward broader stablecoin adoption in card programs.
Progress and Updates as of January 2026
Since launching in November 2025, the pilot has processed real credit card transactions, demonstrating XRPL's capability for institutional use.
RLUSD's growth to $1.3 billion underscores increasing trust in regulated stablecoins. No major disruptions have been reported, and the program continues under regulatory oversight.
A December 2025 report from Amplify ETFs noted this shift toward blockchain in payments, potentially accelerating XRP's utility. The initiative aligns with broader trends, as financial institutions recognize stablecoins' value in modernizing money movement.
Implications for the Payments Industry
This pilot could transform credit card settlements by reducing costs and risks associated with delayed clearings. For merchants and consumers, it means faster fund availability without altering user experience.
Broader adoption might extend to other card programs, fostering innovation in DeFi and cross-border transactions.
However, challenges remain, including scalability, regulatory hurdles, and integration with legacy systems. Success here could pave the way for stablecoins in mainstream finance, blending blockchain efficiency with traditional reliability.
Conclusion
The Ripple-Mastercard pilot validates stablecoins' utility in real-world finance, with ongoing progress signaling a shift toward blockchain-integrated payments.
Institutions should monitor developments for adoption opportunities.
Read Next:
- Best Cross-Chain Stablecoin Bridges for 2026
- Best Stablecoins for Cross-Border Payments in 2025
- The Role of Stablecoins in Monetary Policy Transmission
FAQs:
1. What is the Ripple-Mastercard RLUSD pilot?
It's a program testing stablecoin settlements for credit card transactions on XRP Ledger, launched November 2025.
2. How does RLUSD enable faster settlements?
It processes interbank transfers in seconds on XRPL, replacing traditional multi-day banking rails.
3. Is RLUSD regulated?
Yes, issued under NYDFS Trust Charter with full cash and equivalents reserves.
4. What are the benefits for users?
Faster, cost-effective payments without changing the card experience, enhancing efficiency.
5. Will this expand beyond Gemini Credit Card?
The pilot aims to showcase potential for other programs, subject to approvals.
Disclaimer:
This content is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice; no material herein should be interpreted as a recommendation, endorsement, or solicitation to buy or sell any financial instrument, and readers should conduct their own independent research or consult a qualified professional.
