Global payments giant Mastercard has announced a new pilot program in collaboration with cryptocurrency exchange Gemini and blockchain firm Ripple. The initiative aims to test the settlement of traditional fiat card transactions using a regulated stablecoin on a public blockchain, a significant move to bridge conventional finance with digital asset technology.
Bridging Traditional Finance and Crypto
The trial will involve settling card payments made with the Gemini Credit Card, which is issued by WebBank. Instead of using traditional settlement rails, the transactions will be settled using RLUSD, a stablecoin, on the XRP Ledger (XRPL), the public blockchain supported by Ripple.
This partnership marks one of the first instances where a regulated U.S. bank will participate in settling card payments with a regulated stablecoin on a public, decentralized ledger. By bringing together a payments leader like Mastercard, a regulated crypto platform in Gemini, and a prominent blockchain provider in Ripple, the project signals a growing institutional acceptance of blockchain for real-world financial applications.
Implications for the MENA Fintech Ecosystem
While this trial is based in the U.S., its implications are global and particularly relevant for the rapidly evolving fintech landscape in the Middle East and North Africa. The MENA region has become a hotbed for crypto and blockchain innovation, with regulators in jurisdictions like the UAE and Bahrain actively creating frameworks for digital assets.
A successful pilot by Mastercard could serve as a powerful blueprint for regional banks, payment processors, and fintech startups. It demonstrates a viable path for leveraging blockchain technology to enhance payment efficiency, reduce settlement times, and lower costs for both domestic and cross-border transactions. For a region with a significant volume of remittances and international trade, these efficiency gains could be transformative, potentially inspiring a new wave of blockchain-based financial products tailored for the MENA market.
About Mastercard
Mastercard is a global technology company in the payments industry. Its mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart, and accessible. Using secure data and networks, partnerships, and passion, its innovations and solutions help individuals, financial institutions, governments, and businesses realize their greatest potential.
Source: Tech in Asia
