Mastercard Expands Stablecoin Settlement via Circle's USDC, Ripple's RLUSD

Mastercard is increasing its stablecoin settlement functionality for credit card transactions by integrating regulated stablecoins, including Circle's USDC, Ripple's RLUSD, and SoFi's newly launched SoFiUSD. This expansion allows issuers and acquirers to settle transactions throughout the day, including holidays and weekends, aligning with Mastercard's goal to support a continuous digital economy.

Raj Dhamodharan, Mastercard's Executive Vice President of Blockchain and Digital Assets, emphasized the importance of real-world utility in stablecoin adoption, stating, "The next phase of stablecoin adoption is about real-world utility, especially in settlement, where timing and liquidity matter most." Introducing new settlement options aims to assist partners in managing liquidity more effectively.

The improvement builds upon Mastercard’s ongoing collaboration with Circle, where USDC has previously been used for settling transactions in select markets. Last fall, Mastercard also partnered with Ripple and Gemini to evaluate using RLUSD for transactions on the XRP Ledger. Additionally, Mastercard plans to support other Paxos-issued tokens, including PYUSD, USDG, and USDP, thereby broadening the available options for stablecoin settlement.

Settlement will be facilitated on multiple blockchain networks, such as Ethereum, Solana, and Base, an Ethereum layer-2 solution developed by Coinbase. This versatility allows for faster and more adaptable money movements, catering to a growing need for financial infrastructure that extends beyond traditional banking hours. Kash Razzaghi, Chief Commercial Officer at Circle, remarked on this demand for enhanced services from organizations, highlighting how Mastercard's expanded settlement capabilities cater to that need by providing more flexible value transfer options.