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Ripple’s CEO Brad Garlinghouse is optimistic about the stablecoin market, forecasting that its current $250 billion valuation could surge to as much as $2 trillion in the near future.
Key Takeaways:
- Ripple considers a $2 trillion stablecoin market a plausible near-term scenario.
- RLUSD has exceeded $500 million in market capitalization, with BNY Mellon serving as its custodian.
- Ripple is seeking a US banking license to enhance its integration with conventional finance.
During an appearance on CNBC’s “Squawk Box” on Wednesday, Garlinghouse characterized the growth as “profound,” attributing it to institutional momentum and changing regulations as significant factors.
Garlinghouse pointed out that Ripple entered the stablecoin arena later than others, primarily because the company had been utilizing third-party stablecoins in its enterprise payment processes.
Ripple Bets on RLUSD to Compete in Stablecoin Race
RLUSD, Ripple’s own USD-pegged stablecoin, has provided the company with a chance to compete, leveraging its established institutional foundation and emphasis on regulatory compliance.
“Many believe it could reach between $1 and $2 trillion within a few years,” Garlinghouse remarked, noting that Ripple is well-positioned to take advantage of this growth.
He also revealed that BNY Mellon will serve as the custodian for RLUSD, which achieved the $500 million market cap milestone this week.
Industry experts seem to share Ripple’s positive outlook. Henrik Andersson, CIO at Apollo Capital, informed Cointelegraph that this projection aligns with their internal estimates.
“We are witnessing fintechs, banks, social networks, and large retailers all launching their own stablecoins,” he stated, highlighting the increasing competition and adoption across various sectors.
Andersson also pointed out the success of market leaders like Tether, which has transformed its dominance into substantial profitability.
Looking forward, he mentioned that the GENIUS Act, a proposed bill that would grant stablecoins legal tender status in the US, could significantly accelerate growth.
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This legislation passed the Senate in June and is anticipated to be enacted later this month.
Nick Ruck, director at LVRG Research, added that a more favorable regulatory approach from the SEC could create advantageous conditions for the stablecoin market to expand several times over, potentially reaching the $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
Ripple is also strengthening its connections to traditional finance. Earlier this month, the company applied for a banking license with the Office of the Comptroller of the Currency (OCC) and a Federal Reserve Master Account.
Garlinghouse indicated that this initiative is focused on creating “bridges between traditional finance and DeFi.”
Ripple’s RLUSD Gains Traction
In the meantime, RLUSD continues to gain momentum, having recently integrated with crypto payments provider Transak.
The increasing adoption of RLUSD comes as the stablecoin reached a $500 million market cap for the first time since it began trading less than seven months ago.
XRP, Ripple’s cross-border payments token, has increased by 7% this week, trading at $2.42, its highest price in nearly two months.
Stablecoins have emerged as one of the few success stories in the crypto space, attracting the interest of both corporations and regulators.
Recent reports indicating that Amazon, Walmart, and other major firms are considering stablecoin payments have stirred interest in traditional finance, briefly pushing stablecoin transaction volumes ahead of Visa’s in 2024.
Frank Combay of Next Generation noted that regulatory clarity, particularly with Europe’s MiCA framework, has unlocked the growth potential of stablecoins by eliminating the primary barrier: uncertainty.
He believes that stablecoin ecosystems can lower transaction costs by over 90% and are becoming increasingly appealing to both consumers and businesses.
The post Ripple CEO: Stablecoin Market Could Hit $2 Trillion in Coming Years appeared first on Cryptonews.
