Ripple and Mastercard Launch Pilot for RLUSD Credit Card Settlement on XRP Ledger

In a significant payments-industry update, Ripple Labs has announced a collaboration with Mastercard, WebBank and Gemini Trust Company, LLC to pilot the use of Ripple’s dollar-backed stablecoin, RLUSD, to settle credit-card transactions via the XRP Ledger (XRPL). The initiative, revealed during the Swell 2025 conference, marks a key milestone in the integration of regulated digital assets into traditional payment rails. 

What the Pilot Covers

Under the pilot plan, WebBank which issues the Gemini credit-card programme will explore settling card-based transactions on the Mastercard network using RLUSD via the XRP Ledger.  RLUSD is a U.S. dollar–denominated stablecoin issued under the New York Department of Financial Services (NYDFS) charter and is fully backed by cash and equivalent reserves. The stablecoin recently surpassed the $1 billion circulation mark.

According to the release, this pilot is among the first instances in which a regulated U.S. bank processes fiat credit-card settlement using a regulated stablecoin on a public blockchain.  Implementation is expected to begin in the coming months, subject to regulatory approvals and onboarding planning. 

Significance for Payment Systems

This move holds multiple implications for the payments ecosystem:

• Reduced settlement delays: Traditional card-issuer clearing can take one to three days; settlement via XRPL with RLUSD has the potential to shorten that. 
  
  

• Lower inter-mediary cost and improved transparency: Using a public ledger allows more direct settlement between issuer and card network, potentially cutting out layers of middle-men.
  
  

• Regulatory-compliant blockchain adoption: The partnership emphasises regulated stablecoins and institutional frameworks, addressing a key barrier for financial-industry adoption.
  
  

• Boost to XRPL and Ripple’s institutional narrative: By anchoring a mainstream credit-card settlement pilot, XRPL’s role shifts further from niche crypto rails toward real-world finance infrastructure.

Challenges and Considerations

Despite the positive outlook, several factors merit caution:

• Regulatory approval: The pilot is contingent on relevant permissions and could face delays if compliance or oversight issues arise.
  
  

• Scalability and adoption: Initial use may be limited; scaling to large transaction volumes and many issuers will be critical.
  
  

• Integration complexity: Existing payment-processor and issuer systems must integrate with blockchain-based flows, which can be non-trivial.
  
  

• Consumer experience: For card-holders, the underlying blockchain should remain invisible any hiccup could slow uptake or raise concerns.

Impact on Crypto Ecosystem

For the crypto sector, this pilot reinforces several trends:

• Stablecoins as settlement rails: RLUSD’s use in card transactions underscores how stablecoins are moving beyond trading-only use-cases into payments.
  
  

• Institutional infrastructure: Partnerships between blockchain firms, banks and card networks highlight growing institutional adoption rather than retail-only hype.
  
  

• Token utility: While RLUSD is the focus, the underlying XRPL network and its native token XRP may benefit from increased transactional volume and ecosystem usage.

Frequently Asked Questions (FAQs)

Q 1: What is RLUSD?
RLUSD is a U.S. dollar-backed stablecoin issued by Ripple under a NYDFS Trust Charter. It is fully backed by cash and cash-equivalent reserves and has grown to more than $1 billion in circulation. 

Q 2: Why is the partnership with Mastercard important?
The partnership bridges the traditional card-payment network (Mastercard) with blockchain settlement infrastructure (XRPL), using a regulated stablecoin for fiat-card transactions something rarely attempted at scale in the U.S. financial system.

Q 3: How will the settlement process change for card-holders?
From the card-holder’s perspective, little may visibly change transactions still look like regular card purchases. The difference occurs behind the scenes: settlement between banks and processors may be faster and operate via a blockchain.

Q 4: Could this pilot reduce costs for banks and merchants?
Potentially yes. By streamlining clearing and settlement via blockchain, the need for multiple intermediaries may shrink, and transparency and finality may improve resulting in cost savings.

Q 5: What role does the XRP Ledger play?
The XRP Ledger is the public blockchain infrastructure that will host RLUSD-based card-settlement flows. With fast and low-cost transactions, XRPL aims to support this kind of high-volume payment use-case. 

Q 6: Will this mean XRP (the token) benefits?
While the pilot centres on RLUSD and settlement infrastructure, a successful rollout of institutional applications on XRPL may boost overall ecosystem usage, which could indirectly benefit XRP’s utility and positioning.