Ripple CEO Brad Garlinghouse envisions significant growth for the stablecoin sector, predicting that the market could expand from its current valuation of $250 billion to an impressive $2 trillion in the not-so-distant future.
Key Insights:
Ripple forecasts a potential $2 trillion stablecoin market in the near term.
The company’s own stablecoin, RLUSD, has eclipsed the $500 million mark, with BNY Mellon acting as its custodian.
Ripple is actively seeking a banking license in the U.S. to enhance its connection with traditional financial systems.
During an appearance on Finance Newso’s “Squawk Box” on Wednesday, Garlinghouse characterized this projected expansion as “profound,” attributing it to the increasing momentum among institutional investors and favorable regulatory developments.
Garlinghouse highlighted that Ripple entered the stablecoin arena somewhat later than others, as the company was previously reliant on third-party stablecoins for its enterprise payment operations.
Ripple Leverages RLUSD in the Stablecoin Arena
The launch of RLUSD, Ripple’s USD-pegged stablecoin, has positioned the company to compete effectively, leveraging its existing institutional support and commitment to regulatory compliance.
“Many industry experts predict that the market could reach between $1 to $2 trillion within a few years,” Garlinghouse remarked, indicating Ripple’s advantageous position in capitalizing on this growth.
He also disclosed that BNY Mellon will serve as the custodian for RLUSD, which recently achieved a market capitalization exceeding $500 million.
Industry analysts appear to share Ripple’s optimistic outlook. Henrik Andersson, CIO at Apollo Capital, conveyed to Cointelegraph that such projections align with their own assessments.
“We observe that fintech companies, banks, social media platforms, and large retailers are all introducing their own stablecoins,” he noted, emphasizing increasing competition and adoption across various industries.
Andersson further pointed out the success of established players like Tether, which has turned its market dominance into substantial profits.
Looking forward, he suggested that the GENIUS Act, which seeks to establish legal tender status for stablecoins in the U.S., could significantly accelerate growth in this space. The bill passed the Senate in June and is anticipated to be enacted soon.
Nick Ruck, a director at LVRG Research, also indicated that a more favorable regulatory environment from the SEC could facilitate substantial growth in the stablecoin market, potentially reaching that $2 trillion threshold within a few years.
ANNOUNCEMENT: BNY selected to serve as the primary reserve custodian of @Ripple’s enterprise-grade stablecoin, Ripple USD (#RLUSD).
#BNY and Ripple are jointly committed to paving the way for digital asset adoption at institutional scale and together are helping to bridge the… pic.twitter.com/RjyDyBj0Qk
— BNY (@BNYglobal) July 9, 2025
Additionally, Ripple is strengthening its connections with traditional finance. Earlier this month, the company applied for a banking license from the Office of the Comptroller of the Currency (OCC) and a Federal Reserve Master Account.
Garlinghouse noted that this initiative aims to “build bridges between traditional finance and DeFi.”
RLUSD’s Rapid Adoption
On another front, RLUSD is gaining momentum, having recently integrated with crypto payment provider Transak.
The stablecoin’s adoption is marked by its achievement of a $500 million market cap just months after its trading launch.
Meanwhile, XRP, Ripple’s cross-border payment token, has experienced a 7% increase this week and is now trading at $2.42, its highest price in nearly two months.
The rise of stablecoins is seen as one of the few triumphs in the crypto space, capturing attention from corporations and regulators alike.
Recent developments, including reports that major companies like Amazon and Walmart are exploring stablecoin payments, have shaken traditional finance, leading to a moment where stablecoin transaction volumes briefly surpassed those of Visa in 2024.
Frank Combay of Next Generation emphasized that clearer regulatory environments, particularly Europe’s MiCA framework, have significantly unleashed the growth potential of stablecoins by mitigating the uncertainties that previously held back the market.
He believes that stablecoin ecosystems can drastically reduce transaction costs by over 90%, making them increasingly appealing to consumers and businesses alike.
The post Ripple CEO: Stablecoin Market Could Hit $2 Trillion in Coming Years appeared first on Finance Newso.
