Ripple CEO Brad Garlinghouse believes the stablecoin market is poised for massive growth, potentially expanding nearly tenfold in the coming years.
Speaking on CNBC’s “Squawk Box” on Wednesday, Garlinghouse highlighted that the stablecoin market—currently valued at around $250 billion—could surge to between $1 trillion and $2 trillion within just a few years. “Many people think it will reach $1 to $2 trillion in a handful of years,” he said, noting the “profound” momentum driving this growth.
Garlinghouse explained that Ripple was a relatively late entrant to the stablecoin space because it had already been using stablecoins in payment flows for its institutional clients. However, he emphasized that the company’s institutional experience and commitment to regulatory compliance make it well-positioned to capitalize on the market’s expansion.
“We can participate in this [stablecoin] market given our institutional background and regulatory compliance,” he said, adding that Ripple’s approach aligns with the direction the industry is heading.
His comments came as Ripple announced BNY Mellon as the custodian for its U.S. dollar-pegged stablecoin, RLUSD. The enterprise-grade stablecoin, launched in late 2024, has since grown to a market cap of $500 million—a milestone reached on Wednesday.
Huge growth for stablecoins
Henrik Andersson, Chief Investment Officer at Apollo Capital, echoed Garlinghouse’s outlook, stating on Thursday, “A $1 to $2 trillion market cap for stablecoins aligns with our own projections.”
“We are seeing fintechs, banks, social networks, and large retailers all launch their own stablecoins.”
Henrik Andersson pointed to Tether’s strong profitability as a clear sign of how lucrative the stablecoin market can be.
He added that the next major driver of stablecoin adoption could be the GENIUS Act in the U.S., which aims to make stablecoins legal tender.
The legislation passed a Senate vote in June and is expected to become law later this month.
Nick Ruck, director at LVRG Research, also weighed in, saying, “With a crypto-friendly SEC and the GENIUS Act in place, the industry is well-positioned for rapid expansion. This could push the stablecoin market to a $1–2 trillion market cap within just a few years.”
Ripple banking license
Ripple, which focuses on serving institutional clients, is working toward full regulatory compliance in the U.S. with the goal of operating under the same regulatory framework as banks and traditional financial institutions.
Earlier this month, the company submitted an application for a banking license with the U.S. Office of the Comptroller of the Currency (OCC).
Ripple has also applied for a Federal Reserve Master Account, according to CEO Brad Garlinghouse. “We believe the most important step for crypto and decentralized finance is building bridges with the traditional financial system,” he said.
XRP hits seven-week high
This week, Ripple announced a major boost for its stablecoin through a new integration with Transak, a leading cryptocurrency payments platform.
Meanwhile, Ripple’s cross-border payments token, XRP, has surged 7% since Monday, reaching $2.42 at the time of writing—its highest level in seven weeks.
