Ripple CEO Predicts Stablecoin Market to Quadruple to $2 Trillion

Ripple CEO Brad Garlinghouse has expressed a bullish outlook on the future of stablecoins, predicting that the market could expand to between $1 trillion and $2 trillion within a few years. Currently, the stablecoin market is valued at around $250 billion. Garlinghouse shared these insights during an appearance on a prominent financial news program, emphasizing the significant growth the industry has witnessed. He noted that Ripple, which has been utilizing stablecoins in its payment flows for institutional clients, is well-equipped to capitalize on this market due to its institutional background and commitment to regulatory compliance.

Garlinghouse’s remarks coincided with the announcement that BNY Mellon would serve as the custodian for Ripple’s dollar-pegged stablecoin, Ripple USD. This partnership underscores Ripple’s dedication to regulatory adherence and its strategic alliances within the financial sector. Ripple launched its enterprise-focused stablecoin, RLUSD, in late 2024, which has since achieved a market capitalization of $500 million.

Henrik Andersson, the chief investment officer of a prominent investment firm, concurred with Garlinghouse’s prediction, stating that a $1-2 trillion market cap for stablecoins aligns with their own forecasts. Andersson highlighted the growing trend of fintechs, banks, social networks, and large retailers launching their own stablecoins, driven by the profitability of the business. He cited the success of Tether as an example of the lucrative potential in the stablecoin market.

Andersson also pointed to the upcoming GENIUS Act in the US, which, if enacted, would designate stablecoins as legal tender. This legislation, which passed a Senate vote in June, is anticipated to become law soon. The supportive stance of the SEC towards crypto, combined with the GENIUS Act, could accelerate the expansion of the stablecoin market, potentially reaching $1-2 trillion in market cap within a few years, according to an industry analyst.

Ripple, which primarily serves institutional clients, is taking proactive steps to ensure full compliance within the US regulatory framework. The firm recently applied for a banking license with the US Office of the Comptroller of Currency (OCC) and a Federal Reserve Master Account. Garlinghouse stressed the importance of bridging traditional finance and decentralized finance (DeFi) to drive growth in the crypto industry.

In addition to its stablecoin initiatives, Ripple has integrated its stablecoin with Transak, a major cryptocurrency payments platform. This integration is expected to provide a significant boost to Ripple’s stablecoin offerings, further solidifying its position in the market.