XRP surged to nearly $2.39 on Thursday after dipping below $2.20 earlier in the week, following news that Mastercard, Ripple, and Gemini are teaming up to pilot blockchain-based payment settlements. The market reacted swiftly to confirmation that the companies will test Ripple’s RLUSD stablecoin for credit card transaction settlement on the XRP Ledger (XRPL).
Mastercard is testing how RLUSD, a dollar-backed and regulated stablecoin, processes settlements within its existing payment network. Gemini and WebBank are linking the Gemini credit card to the pilot, creating one of the first cases where a regulated U.S. bank conducts blockchain-based fiat transaction settlements.
How the Partnership Works
When a Gemini cardholder makes a purchase, the transaction typically passes through multiple financial institutions for clearing and settlement, a process that can take several days. Under this pilot, Mastercard and its partners will test the use of RLUSD on XRPL as a potential settlement mechanism.
Ripple’s technology would record and validate each transfer on the ledger, allowing participants to evaluate blockchain’s ability to deliver real-time visibility and efficiency in settlement flows. Ripple backs RLUSD with U.S. dollars and short-term government securities to keep it compliant with U.S. financial regulations.
According to the announcement, Mastercard, Ripple, Gemini, and WebBank plan to begin testing in the coming months, following necessary regulatory reviews and partner onboarding
Expanding Roles in Digital Assets
This initiative extends Mastercard’s growing activity in digital finance. Earlier this year, the company worked with Chainlink to support direct fiat-to-crypto conversions. On the same day as this latest announcement, Humanity Protocol, a digital identity firm using open finance tools for credit access and lending, announced its integration with Mastercard.
Gemini, meanwhile, has continued to develop its card ecosystem. Its XRP edition card allows users to earn crypto-based rewards, while its newer Solana card offers cashback in SOL tokens. According to Gemini’s CFO, Dan Chen, the goal is to integrate digital assets into everyday spending. “Through the Gemini Credit Card, we’re advancing the way that digital assets are integrated into everyday spending,” he stated. “In this next phase of the collaboration, we’re demonstrating how stablecoin settlement can be applied to an active card program, connecting blockchain innovation to real consumer payments.”
Why it Matters for Payments and Users
For everyday users, this pilot may not change how payments feel at checkout. A card swipe still works as usual, and charges still appear on statements. The difference happens behind the scenes, where blockchain could handle settlement instead of legacy systems like SWIFT.
If the model works, it could let financial institutions move funds faster, lower processing costs, and simplify transaction tracking. Mastercard, Ripple, and Gemini are testing whether regulated stablecoins can handle real settlement volumes while maintaining full compliance.
The challenges remain considerable. Regulators need to review the framework, RLUSD must sustain liquidity, and Mastercard’s global systems must connect smoothly with Ripple’s technology. Each successful test, however, brings the financial industry closer to a world where stablecoin-based settlements stand alongside, or even rival, SWIFT’s long-established network.
