Credit card giant Mastercard is teaming up with Gemini and Ripple to explore using RLUSD stablecoins, on XRPL, to settle fiat card transactions, the companies said Wednesday. “Once implemented, this will mark one of the first collaborations where a regulated U.S. bank settles traditional card transactions using a regulated stablecoin on a public blockchain,” according to a statement.
Many crypto platforms are hoping to generate more transaction revenue and add new clients by offering debit and credit cards for everyday purchases. XRPL, or XRP Ledger, is an open-source blockchain primarily used to enhance payment capabilities. Ripple serves as the blockchain’s chief advocate. Gemini is a crypto trading platform founded by Cameron and Tyler Winklevoss in 2014. The company offers an XRP edition of its credit card with help of WebBank. XRP is the token most closely associated with Ripple. Last month, Gemini also launched a “Solana edition” of its credit card, offering up to 4% back in Solana token rewards on every purchase.
“Through the Gemini Credit Card, we’re advancing the way that digital assets are integrated into everyday spending,” Gemini’s Chief Financial Officer Dan Chen said. WebBank, which is the issuer of Gemini’s credit card, is also part of the RLUSD-settlement initiative announced Wednesday. Mastercard’s ties among firms and technology providers operating in the digital asset space continues to grow.
Notably, in June the company partnered with Chainlink to allow consumers to purchase crypto “directly onchain through a secure fiat-to-crypto conversion.” Also on Wednesday, “digital identity solution provider” Humanity Protocol said it struck an agreement to work with Mastercard. The collaboration “will enable users to tap into open finance technology to access credit, loans, and real-world financial services through Humanity Protocol,” according to a statement.
