In an effort to revolutionize payment with blockchain technology, Mastercard is cooperating with Ripple and Gemini to investigate the application of RLUSD stablecoins on the XRP Ledger (XRPL) for fiat card transactions. The experiment, which was made public on Wednesday, intends to demonstrate the use of regulated stablecoins on a public blockchain by regulated banks in the U.S. for the settlement of card payments.
One of the first landmarks of this collaboration is the situation where a regulated U.S. bank will be utilizing a regulated stablecoin on a public blockchain in order to settle traditional card transactions. This is stressed by the move as an indication of Mastercard’s persistent effort to implant digital assets into the standard financial services framework of the future.
Gemini, the crypto trading platform, which was established by Cameron and Tyler Winklevoss, is providing an XRP version of its credit card through WebBank. WebBank is also a party in the RLUSD settlement project. The XRPL blockchain — a network that has been widely praised for its speed and power — is the basis for Ripple’s payment network and is the technology that supports the new way of settlement initiated here.
Dan Chen, Gemini’s Chief Financial Officer, stated that the partnership is a big step in the process of Digital Asset integration into everyday financial life. “With the Gemini Credit Card, we are transforming the way in which digital assets become part of the daily financial transactions of consumers,” Chen said. The card allows users to accumulate rewards in XRP and at the same time, transact in fiat smoothly.
In a similar vein, last month, Gemini unveiled a Solana version of its credit card to offer as much as 4% of the amount spent back in SOL tokens, thereby giving another proof of the company’s dedication to crypto-driven payment solutions.
Mastercard has been actively expanding its partnerships in the digital asset space. In the first half of this year, the company connected with Chainlink to make fiat-to-crypto conversions more secure and transparent by recording them directly on-chain. So, customers can now buy crypto via Mastercard’s infrastructure.
Moreover, on Wednesday, Humanity Protocol, the provider of a digital identity solution, announced its partnership with Mastercard. The collaboration intends to utilize open finance technology to empower users with access to credit, loans, and other financial services from the real world, thereby consolidating Mastercard’s position as a go-between traditional finance and decentralized innovation.
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