Ripple Explores Stablecoin Settlement to Boost Fiat Payments

Digital assets infrastructure company Ripple has launched a collaboration with Mastercard, WebBank and Gemini.

This partnership, announced Thursday (Nov. 6) will explore the use of Ripple stablecoin (RLUSD) on the XRPL blockchain to support stablecoin settlement of fiat card transactions, and facilitate blockchain-based settlement processes between Mastercard and WebBank, the issuer of the Gemini Credit Card.

“Through our partnerships with Ripple, Gemini, and WebBank, we’re using our global payments network to bring regulated, open-loop stablecoin payments into the financial mainstream,” Sherri Haymond, global head of digital commercialization at Mastercard, said in a news release.

“Guided by our commitment to consumer choice and a principled approach to stablecoins — one that emphasizes strong consumer protections, a level playing field, and full regulatory compliance — we’re enabling settlement today while exploring how stablecoins can support future use cases.”

Once underway, this effort will mark one of the first collaborations in which a regulated U.S. bank settles traditional card transactions with a regulated stablecoin on a public blockchain. This effort also expands on Ripple’s work with Gemini and WebBank on the Gemini Credit Card, which debuted an XRP edition earlier this year.

“Banks are uniquely positioned to bridge innovative blockchain technology with the stability of the traditional financial system,” said Jason Lloyd, WebBank’s president and CEO.

“Our collaboration with Mastercard, Gemini and Ripple allows us to explore how stablecoins like RLUSD can make institutional payments faster and more efficient while maintaining the security and dependability customers expect from banks.”

The partnership comes one day after Ripple announced it had reached a valuation of $40 billion following a $500 million investment.

“This investment reflects both Ripple’s incredible momentum, and further validation of the market opportunity we’re aggressively pursuing by some of the most trusted financial institutions in the world,” Brad Garlinghouse, Ripple’s CEO, said in a news release.

“We started in 2012 with one use case — payments — and have expanded that success into custody, stablecoins, prime brokerage and corporate treasury, leveraging digital assets like XRP. Today, Ripple stands as the partner for institutions looking to access crypto and blockchain.”

Meanwhile, PYMNTS spoke last week with Tanner Taddeo, chief executive at Stable Sea, who argued that stablecoins in enterprise finance promise near-instant settlement, lower cost and worldwide reach.

“Moving $10 [million] to $30 million across borders into exotic corridors typically takes three to five business days. With stablecoins, it can settle in four to eight hours,” Taddeo said.

“Every business has a stablecoin use case,” he added. “Whether it’s internal payroll, contractor payments or capital markets access. Form a tactical SWAT team to identify the right pilot.”