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Leading decentralized exchange First Ledger has indicated that major financial institutions, including Mastercard and WebBank, will actively use XRP as part of ongoing payment initiatives on the XRP Ledger (XRPL). This development comes shortly after Ripple announced its collaboration with Mastercard, WebBank, and Gemini to pilot the RLUSD stablecoin for traditional card payment settlements on XRPL.
XRP as the Backbone of XRPL Transactions
While Ripple’s pilot project primarily emphasizes the RLUSD stablecoin, First Ledger asserts that all participating parties—including Ripple, Mastercard, Gemini, and WebBank—will effectively interact with XRP. This is because the XRP Ledger’s architecture requires the native asset, XRP, for network operations. All transaction fees on XRPL are paid in XRP, ensuring that any stablecoin or token-based settlement inherently involves the digital asset.
In practical terms, while RLUSD may serve as the settlement currency for pilot transactions, the movement of value across XRPL necessitates XRP. This makes it a critical component in bridging traditional financial infrastructure with blockchain-based payments.
How Mastercard, Gemini, Ripple, and WebBank Will Leverage XRP
According to First Ledger, the new initiative will allow these institutions to explore regulated stablecoin settlements while indirectly using XRP to process transactions efficiently. The design of XRPL ensures that each transfer, whether using RLUSD or any other token, consumes XRP to maintain ledger security and facilitate settlement finality.
Ripple has a long history of utilizing XRP in its On-Demand Liquidity (ODL) solution, now rebranded as Ripple Payments. ODL leverages XRP as a bridge asset to enable near-instant cross-border payments. The system has facilitated billions of dollars in transactions, including $1 billion processed by Tranglo in 2023 alone.
Through the RLUSD pilot, Mastercard, WebBank, and Gemini will further explore the interoperability between traditional payment networks and the XRP Ledger. While RLUSD serves as the regulated stablecoin for payments, XRP remains essential to maintain network efficiency, liquidity, and low transaction costs.
Previous Engagement with XRP
This isn’t the first time these financial entities have collaborated using XRP. In August, Ripple, Gemini, WebBank, and Mastercard introduced the Gemini XRP Credit Card. This card, issued by WebBank and powered by Mastercard, enables users to spend in traditional fiat while receiving cashback rewards in XRP.
The credit card initiative demonstrated how XRP could integrate with mainstream financial products, giving customers tangible exposure to the digital asset while maintaining regulatory compliance. First Ledger’s report suggests that the RLUSD pilot will expand on this integration, bringing XRP into broader payment settlements in the banking and card sectors.
Implications for Institutional XRP Adoption
First Ledger’s insight highlights a growing trend in institutional adoption of XRP. By leveraging XRPL’s fast, scalable network, financial institutions can experiment with tokenized settlement solutions while still relying on a secure, decentralized ledger. XRP’s role as a native asset ensures low fees, rapid transaction times, and seamless cross-border settlement.
For Ripple, Mastercard, WebBank, and Gemini, this pilot represents a strategic step in bridging fiat and crypto payment infrastructure. By allowing XRP to underpin transactions on XRPL, the project reinforces the token’s utility beyond speculative trading, emphasizing its role as a functional bridge asset in global finance.
XRP Ledger as a Settlement Network
The XRP Ledger continues to position itself as one of the most efficient and scalable blockchain networks. Its ability to support stablecoin settlements, cross-border payments, and tokenized financial products offers a compelling case for institutional adoption. With First Ledger confirming XRP’s central role in the RLUSD pilot, the network’s real-world utility is likely to increase.
Institutional investors and payment providers stand to benefit from XRPL’s combination of high throughput, low fees, and decentralized security. The integration with regulated stablecoins like RLUSD provides a compliant pathway for mainstream adoption while leveraging the network effects of XRP.
Conclusion
First Ledger’s report reinforces the growing importance of XRP in bridging traditional finance and blockchain technology. While RLUSD stablecoin will be the primary settlement asset in the upcoming pilot, XRP will play a critical role in transaction processing, fees, and network operations.
The involvement of major players like Mastercard, WebBank, Gemini, and Ripple underscores the institutional trust and adoption potential for XRP. As the pilot progresses, XRP’s position as a bridge asset for regulated settlements could see broader use across payments, cards, and institutional finance, cementing its utility beyond the crypto market.
With XRP continuing to underpin these initiatives, both retail and institutional participants should monitor developments closely, as this could signal a new phase of mainstream integration for the XRP Ledger and its native asset.
