CEO Ripple: The Stablecoin Market Could Reach 2 Trillion USD In The Coming Years

The CEO of Ripple, Brad Garlinghouse, believes that the stablecoin sector is poised for explosive growth, predicting that the market could grow from its current capitalization of $250 billion to $2 trillion in the near future. Speaking on CNBC's "Squawk Box" program on Wednesday, Garlinghouse described the expansion as "profound," viewing the developing momentum of institutions and regulations as key drivers. Garlinghouse noted that Ripple entered the stablecoin market late, largely because the company has leveraged third-party stablecoins in its enterprise payment flow. Ripple Bets on RLUSD to Compete in the Stablecoin Race RLUSD, the stablecoin pegged to USD by Ripple, has provided this company with a competitive opportunity thanks to its existing organizational framework and focus on regulatory compliance. Garlinghouse stated: "Many people believe it will reach 1 to 2 trillion dollars in the coming years," adding that Ripple is in a position to benefit from that trajectory. He also announced that BNY Mellon will act as the custodian for RLUSD, a coin that has surpassed a market capitalization of 500 million dollars this week. The voice in the industry also seems to agree with Ripple's optimism. Henrik Andersson, CIO at Apollo Capital, told Cointelegraph that this forecast aligns with their internal predictions. He stated, "We are witnessing financial technology companies, banks, social networks, and major retailers all launching their own stablecoins," while pointing out the increasing competition and adoption across many sectors. Andersson also emphasized the success of market-leading companies like Tether, which has turned its dominance into significant profits. Looking ahead, he stated that the GENIUS Act, a bill that would grant stablecoins legal tender status in the United States, could be a major driving force. The bill was passed by the Senate in June and is expected to be enacted by the end of this month. Nick Ruck, director at LVRG Research, added that a more friendly regulatory stance from the SEC could facilitate the stablecoin market to grow exponentially, potentially reaching the milestone of 2 trillion dollars within a few years.

Ripple is also tightening its ties with traditional finance. Earlier this month, the company applied for a banking license with the Office of the Comptroller of the Currency (OCC) and the Main Account of the Federal Reserve. Garlinghouse stated that this move aims to build "a bridge between traditional finance and DeFi". Ripple's RLUSD is Attracting Attention Meanwhile, RLUSD continues to attract attention as it has recently integrated with the cryptocurrency payment provider Transak. The RLUSD is increasingly being adopted in the context of this stablecoin reaching a market capitalization of 500 million dollars for the first time since it was launched for trading less than seven months ago. XRP, the cross-border payment token of Ripple, has increased by 7% this week, trading at $2.42, the highest level in nearly two months. Stablecoins have emerged as one of the rare success stories of cryptocurrencies, attracting the attention of both corporations and regulators. Recent reports indicate that Amazon, Walmart, and other major companies are exploring stablecoin payment methods, creating a ripple effect in the traditional financial sector, pushing stablecoin transaction volumes to surpass Visa in a short time in 2024. Frank Combay from Next Generation stated that regulatory clarity, especially the EU's MiCA framework, has opened up the growth potential of stablecoins by removing the biggest barrier: uncertainty. He believes that the stablecoin ecosystem can reduce transaction costs by more than 90% and is becoming increasingly attractive to both consumers and corporations.