Mastercard, a major credit card company, is collaborating with Gemini and Ripple to investigate the use of RLUSD stablecoins on XRPL to settle fiat card transactions, the firms said on 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,” said a statement.
Reason for the partnership
The partnership was formed as several cryptocurrency companies want to increase transaction income and attract new customers by providing debit and credit cards for regular transactions.
The main purpose of the open-source blockchain XRPL, or XRP Ledger, is to improve payment capabilities. The main proponent of the blockchain is Ripple.
Cameron and Tyler Winklevoss established Gemini in 2014. With the support of WebBank, the firm now provides an XRP edition of its credit card. XRP is the native crypto token of Ripple.
Gemini also introduced a “Solana edition” of its credit card last month, which offers SOL token incentives of up to 4% back on each transaction.
This will be one of the first partnerships in which a regulated U.S. bank uses a regulated stablecoin on a public blockchain to settle conventional card transactions.
Additionally, this endeavour builds upon Ripple’s previous collaboration with Gemini and WebBank on the Gemini Credit Card, which introduced an XRP version earlier this year and acts as a template for integrating digital assets into conventional payment systems.
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Leaders quotes
“Through the Gemini Credit Card, we’re advancing the way that digital assets are integrated into everyday spending,” said Dan Chen, Chief Financial Officer at Gemini.
“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.”
Other developments
Ripple introduced RLUSD, a stablecoin backed by the US dollar, to Africa in September. According to the firm, it has partnered with Yellow Card, VALR, and Chipper Cash to provide controlled access to the token.
The effort is aimed at institutional users throughout the continent, and according to Ripple, the goal is to satisfy the increasing need for dependable cross-border money transfers.
Additionally, Ripple and SBI Group announced their intention to use SBI VC Trade to distribute Ripple USD, or RLUSD, in Japan. A memorandum of agreement outlining the concept was signed by the partners.
In Japan, SBI VC Trade is a licensed supplier of electronic payment exchange services. The goal of the action is to provide local users and institutions with a new stablecoin choice.