Global payments giant Mastercard will partner with Ripple and Gemini to test the implementation of traditional card payments on a public blockchain using a regulated stablecoin. According to the companies, this initiative will be one of the first times a US-regulated bank has reconciled card transactions using a stablecoin.
As part of the project, Mastercard and Gemini's RLUSD stablecoin will be used on the XRP Ledger (XRPL) network. XRPL is an open-source blockchain network developed by Ripple and is known for its low-cost payment processing in seconds. Using RLUSD aims to both transparently record transactions on-chain and offer cost and speed advantages over traditional payment infrastructure.
"With the Gemini Credit Card, we are taking the integration of digital assets into everyday spending a step further," said Gemini Chief Financial Officer Dan Chen, emphasizing that the project aims to bridge the gap between the financial system and crypto assets. Gemini's XRP-themed credit card, launched in partnership with WebBank, allows users to earn rewards with XRP. WebBank will also be a key component of the stablecoin settlement process, which will be conducted via RLUSD.
This initiative demonstrates Mastercard's continued expansion into the digital asset space. Last June, the company partnered with Chainlink to allow users to purchase crypto assets directly on-chain with fiat currency. Mastercard is also leading the migration of financial services such as identity verification and access to credit to the Web3 ecosystem by partnering with initiatives like Humanity Protocol in the digital identity and open finance space.
On the Ripple side, ecosystem expansion efforts are ongoing. The company recently announced the acquisition of Palisade, a provider of enterprise wallet and custody technologies. This acquisition aims to strengthen Ripple's payment and custody solutions for corporate customers. Palisade's multi-blockchain support and multi-party computation (MPC) technologies will be integrated into Ripple's existing services.
XRP price on the rise
Following this news, the XRP price rose 4.9 percent to $2.35, breaking above the critical $2.30 resistance. Analysts note that the Mastercard and Gemini partnership adds a new trust factor to the Ripple ecosystem and expands the enterprise use cases of the XRP Ledger.
