Ripple and Mastercard Test Secret Stablecoin System for Card Payments

**Ripple and Mastercard Partner to Test RLUSD Stablecoin Payments for Real-Time Fiat Card Settlements**

Ripple has announced a new partnership with Mastercard, WebBank, and Gemini to test RLUSD stablecoin payments. This collaboration aims to leverage Ripple’s XRPL platform to process real-time fiat card settlements securely and efficiently. The trial will evaluate the potential of blockchain technology to support mainstream financial transactions.

### Ripple Partners with Mastercard for On-Chain Settlements

In this collaboration, Ripple will work with Mastercard and WebBank to enable on-chain settlements for fiat card payments. The test will assess how the RLUSD stablecoin performs within Mastercard’s extensive global payment network. Additionally, the trial will examine compliance and operational stability for regulated financial institutions involved.

Mastercard plans to integrate Ripple’s XRPL platform to manage the settlement layer of these payments, aiming to bridge blockchain efficiency with traditional financial systems. The companies expect this system to provide fast, transparent settlements to participating institutions.

Sherri Haymond, Global Head of Digital Commercialization at Mastercard, commented on the partnership’s goal:
“Through our partnerships with Ripple, Gemini, and WebBank, we’re using our global payments network to bring regulated, open-loop stablecoin payments into the financial mainstream.” She emphasized Mastercard’s belief that stablecoins can offer a secure and compliant transaction layer for banks and issuers.

### RLUSD Stablecoin Enters Regulated Payment Testing

Central to this pilot program is Ripple’s RLUSD stablecoin. The coin will facilitate settlements between Mastercard and WebBank, the issuer of the Gemini credit card involved in the trial. This initiative marks the first use of a regulated on-chain stablecoin for fiat settlement.

Currently, the RLUSD token has a total supply of $2 billion, with steady growth in the stablecoin market. Ripple envisions RLUSD as a reliable digital asset capable of supporting large-scale institutional transactions. The company highlights RLUSD’s controlled expansion as a reflection of its commitment to compliance and long-term stability.

Jason Lloyd, President and CEO of WebBank, emphasized the bank’s role in the project:
“Banks are uniquely positioned to bridge innovative blockchain technology with the stability of the traditional financial system.” WebBank will oversee settlement functions, ensuring regulatory oversight throughout the testing phase.

### XRPL to Demonstrate Institutional Settlement Capacity

The XRPL platform will power all transactions within this trial. Ripple originally developed XRPL to handle up to 1,500 transactions per second with minimal costs. Now, the system will be evaluated for its capacity to deliver institutional-grade payment efficiency.

Ripple President Monica Long stated that regulated stablecoins like RLUSD have the potential to enhance financial settlement systems. She added that Ripple’s goal is to expand XRPL’s presence in institutional finance through compliance-driven innovation and plans to integrate future programs once regulatory approvals are secured.

Currently, the XRPL network supports about 7,000 active wallets daily. Ripple continues to maintain XRP as one of the top 10 cryptocurrency assets by market value, with XRP trading steadily at around $2.31, reflecting consistent market interest.

### Regulatory Approval and Future Outlook

Before full deployment, regulators must approve RLUSD’s onboarding. Ripple and its partners will coordinate settlement processes once the necessary approvals are granted. This trial represents a landmark collaboration between a regulated U.S. bank and an on-chain settlement network.

This partnership signals a significant step toward integrating blockchain technology with traditional financial infrastructures, aiming to provide faster, more transparent, and compliant payment solutions.

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*Source: Blockonomi*
https://bitcoinethereumnews.com/tech/ripple-and-mastercard-test-secret-stablecoin-system-for-card-payments/