Mastercard, Ripple, and the cryptocurrency exchange Gemini are teaming up in a strategic move to execute an innovative stablecoin settlement trial. The collaboration will use the public XRP Ledger (XRPL) blockchain to settle traditional card transactions using a regulated stablecoin. Dan Chen, Chief Financial Officer of Gemini, stated that this partnership advances “how digital assets are integrated into everyday spending,” aiming to make crypto payments more efficient, secure, and provide real-world utility.
The impact of this initiative is significant, as it will represent one of the first times a regulated U.S. bank, WebBank (issuer of the Gemini Credit Card), settles traditional fiat transactions directly on a public blockchain. The main goal is to modernize payment infrastructure by streamlining settlements, reducing operational costs, and improving transparency in transaction processing compared to traditional fiat rails.
This pilot marks another milestone in the expansion of Mastercard’s digital asset strategy, underscoring its commitment to connecting traditional finance with Web3. The industry will be closely watching the performance of this integration, which follows other recent Mastercard partnerships with firms like Chainlink and Humanity Protocol. The trial’s success could accelerate the adoption of public blockchains for large-scale payment settlements.
Source: https://ripple.com/ripple-press/ripple-teams-up-with-mastercard-webbank-and-gemini/
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