Ripple’s Strategic Collaboration
In a strategic collaboration announced on Wednesday, Ripple is teaming up with Mastercard, WebBank, and Gemini to investigate the integration of its RLUSD stablecoin—backed by the US dollar—into the settlement of fiat credit card transactions via the XRP Ledger. The initiative hinges on obtaining the necessary regulatory approvals, which the partners expect to initiate in the upcoming months by integrating RLUSD into the settlement mechanisms utilized by both Mastercard and WebBank, the issuer associated with the Gemini Credit Card.
Regulatory Compliance
A Ripple spokesperson emphasized the importance of adhering to regulatory standards:
“Regulatory approval is a key part of this effort, and it’s something we take seriously… This initiative involves a regulated U.S. bank and stablecoin settlement, so we will proceed only when all approvals are secured. The timing will be shaped by the regulatory process, and we are committed to advancing this project responsibly, abiding by applicable frameworks.”
Innovative Credit Card Features
Earlier this year, Ripple collaborated with Gemini and WebBank to launch an XRP variant of the Gemini Credit Card, distinguishing it from conventional credit cards that typically offer rewards like points or cash back. Instead, this card rewards users with XRP tokens for every transaction. In this latest endeavor, credit card transactions across all versions of the Gemini Credit Card—encompassing Bitcoin and Solana variations—could utilize RLUSD for settlement on the XRP Ledger.
Enhancing Settlement Processes
The spokesperson further elaborated,
“Stablecoin settlement on the XRP Ledger has the potential to accelerate and enhance the settlement process. By leveraging RLUSD, banks and networks may transfer funds almost instantaneously, which would significantly improve liquidity management and provide greater clarity throughout the financial ecosystem. Our goal is to streamline the transfer of funds among trusted partners while maintaining the existing payment experiences for users.”
Growth of RLUSD
Since its launch in December on both the Ethereum and XRP Ledger platforms, Ripple’s RLUSD has seen considerable growth, reaching over $1 billion in market capitalization, which ranks it as the 11th largest stablecoin according to DefiLlama. Just last month, RLUSD was incorporated into Securitize’s platform, broadening its applicability in institutional environments, particularly with tokenized money market funds. Additionally, the stablecoin operates under regulatory oversight from the New York Department of Financial Services (NYDFS), with primary custody held by BNY Mellon.
Recent Developments
On a related note, Ripple disclosed raising $500 million at a valuation of $40 billion on Wednesday, while the associated XRP token saw a dip of 2.6% in the last 24 hours, trading at $2.26.
