Although still in pilot stages, RLUSD, a U.S. dollar-backed stablecoin launched by Ripple and regulated under a New York Trust Charter, is being tested to settle Mastercard credit card transactions via Gemini’s WebBank-issued card, marking one of the first attempts to use a regulated stablecoin for fiat card settlement on a public blockchain. The experiment pairs RLUSD, which is fully backed by cash and cash equivalents to maintain 1:1 parity with the dollar, with the XRP Ledger (XRPL), an open-source blockchain designed for efficient payments, and it aims to accelerate settlement compared with traditional rails that typically take one to three days. The pilot involves Mastercard, Ripple, Gemini, and WebBank, and it seeks regulatory approvals and compliance checks before any larger rollout is considered. This initiative aligns with recent MiCA regulations aiming to enhance consumer protection and market integrity in crypto payments. Ripple president Monica Long said the project aims to bring blockchain speed and efficiency into payment back-ends. RLUSD was introduced in December 2024 and, operating under New York’s Trust Charter and oversight by the NYDFS, is built with compliance and consumer protections in mind, which are emphasized by participating firms as essential for public adoption. Gemini’s credit card, issued by WebBank, already includes an XRP edition and additional crypto reward variants such as a Solana edition, and the RLUSD integration extends Gemini’s role in bridging custody and payment functions between traditional finance and digital assets. WebBank will test settlement mechanics on Mastercard transactions, using RLUSD on XRPL to record and finalize transfers, while Gemini continues to manage customer-facing features like rewards and account services. The XRPL is selected for its speed and low-cost transactions, enabling near-real-time settlement on a public ledger, and onboarding RLUSD to XRPL is planned in the coming months to support these pilot flows. Proponents argue the approach could simplify back-office processes, reduce counterparty risk, and free liquidity tied up in multiday settlement cycles, yet observers caution that operational, legal, and regulatory complexities remain, including custody arrangements, reserve audits, and cross-jurisdictional oversight. The pilot is positioned as a measured step, intended to demonstrate technical feasibility and compliance pathways, and its outcomes could influence how regulated stablecoins are used for mainstream payment settlement going forward. RLUSD has grown to over $1 billion in circulation.
