Mastercard widens blockchain settlement push

Mastercard is moving deeper into blockchain-based settlement by adding regulated stablecoins and the XRP Ledger to a wider upgrade of its global payments infrastructure, marking a significant step in the effort to make card settlement operate beyond conventional banking hours.

The payments group has outlined plans to expand settlement options for issuers and acquirers, including intraday, weekend and holiday processing in fiat currencies and on-chain card settlement using regulated stablecoins. The move is designed to give banks, financial technology companies and payment processors more flexibility in managing liquidity, particularly across cross-border payments, treasury operations and payout flows where timing can affect cost and cash availability.

Ripple’s RLUSD stablecoin is among the digital assets included in the programme, with the XRP Ledger listed among the supported blockchain networks. Other stablecoins named in the broader settlement framework include Circle’s USDC, Paxos-issued PYUSD, USDG and USDP, and SoFiUSD. The networks identified for settlement support include Arbitrum, Base, Canton, Ethereum, Polygon, Solana, Tempo and XRPL.

The announcement builds on an earlier collaboration involving Mastercard, Ripple, WebBank and Gemini to explore the use of RLUSD on XRPL for settling fiat-based card transactions linked to the Gemini Credit Card. That initiative was positioned as one of the first efforts in which a regulated US bank would test settlement of traditional card transactions using a regulated stablecoin on a public blockchain, subject to approvals and integration work.

Mastercard’s latest move signals that stablecoins are being treated less as speculative crypto instruments and more as infrastructure for institutional money movement. The company is not replacing its existing settlement rails; rather, it is adding digital asset-based options alongside conventional processes. That distinction is important for banks and acquirers, which remain bound by capital, compliance and operational requirements even as they seek faster settlement cycles.

Raj Dhamodharan, executive vice-president for blockchain and digital assets at Mastercard, said the next phase of stablecoin adoption is focused on “real-world utility”, particularly in settlement where liquidity and timing matter. His comments underline Mastercard’s strategy of integrating digital assets into established networks without giving up the safeguards that underpin card payments, including fraud controls, dispute processes and security standards.

For Ripple, inclusion of RLUSD and XRPL strengthens its pitch to financial institutions that public blockchain networks can support regulated financial activity. RLUSD, a US dollar-backed stablecoin issued under a New York trust company framework, has been promoted as an institutional-grade settlement asset. Ripple has argued that public blockchains can improve payment speed and transparency while retaining compliance features demanded by banks and payment companies.

The involvement of WebBank and Gemini gives the XRP Ledger use case a direct link to card payments rather than a purely crypto-native transaction flow. WebBank issues the Gemini Credit Card, while Gemini provides the digital asset platform behind the programme. The collaboration allows Mastercard and its partners to test whether stablecoin settlement can reduce friction in a live card environment without changing the consumer-facing payment experience.

Several early participants are expected to support stablecoin settlement optionality in the United States and Latin America, including ARQ, CBW Bank, Cross River, Lead Bank and Nuvei. Their participation points to growing demand among banks and payment platforms for settlement systems that can operate outside traditional cut-off times, particularly in markets where cross-border transfers and liquidity management remain costly.

The broader context is a sharp acceleration in institutional stablecoin activity. Payment firms, banks and blockchain companies are competing to define how tokenised dollars move through regulated financial systems. Visa, PayPal, Circle, Paxos and several bank-backed platforms are also advancing stablecoin settlement and tokenised money initiatives, creating a race to link blockchain rails with existing payment networks.

Regulatory scrutiny remains a central factor. Stablecoins used in payment settlement must satisfy requirements around reserves, redemption, sanctions screening, anti-money-laundering controls and consumer protection. Mastercard has emphasised that its settlement expansion will roll out subject to regulation, with additional regions, partners and stablecoins added over time.

The development also raises competitive questions for blockchain networks. XRPL gains visibility from RLUSD’s inclusion, but Mastercard’s multi-network approach shows that no single blockchain is being treated as the sole rail for institutional settlement. Instead, payment companies appear to be building interoperable frameworks that allow regulated assets to move across several networks depending on market, partner and compliance needs.

For card issuers and acquirers, the immediate benefit is likely to be operational rather than consumer-facing. Faster settlement can improve liquidity, reduce idle balances and support more flexible treasury planning. For merchants and end users, any impact may emerge later through lower payment friction, quicker payouts or new cross-border services.