Ripple CEO Predicts Stablecoin Market Could Hit $2 Trillion Within Years

Ripple CEO Brad Garlinghouse believes the stablecoin industry is set for explosive growth, potentially reaching a $1–2 trillion market capitalization within just a few years. Speaking on CNBC’s “Squawk Box,” Garlinghouse highlighted the rapid expansion of the stablecoin sector and Ripple’s strategic entry into the market with RLUSD.

Stablecoins Expected to Surge in Value

Currently, the global stablecoin market is valued at around $250 billion. However, Garlinghouse explained that “many people think it will reach $1 to $2 trillion in a handful of years,” signaling a nearly tenfold increase. He called the pace of growth “profound” and emphasized that this trend is drawing significant interest from institutional players.

Garlinghouse noted that although Ripple joined the stablecoin race later than others, the company had long utilized stablecoins in its payment services for institutional clients. With a strong background in compliance and regulation, Ripple sees its role in the sector as both strategic and essential.

BNY Mellon to Custody RLUSD Reserves

Ripple also revealed that it has partnered with the Bank of New York Mellon (BNY Mellon) to manage the cash and Treasury reserves backing its RLUSD stablecoin. As one of the oldest and most respected banks in the United States, BNY Mellon’s involvement adds a layer of credibility to RLUSD and positions Ripple’s token among the most securely backed stablecoins on the market.

Garlinghouse said that Ripple’s institutional background gives it a competitive edge as the company works to bring traditional financial safeguards into the crypto space. The RLUSD token is fully backed 1:1 by U.S. dollar reserves and is already circulating on both the XRP Ledger and Ethereum networks.

RLUSD Surpasses $500 Million in Market Cap

Started in late 2024, Ripple’s RLUSD stablecoin has grown steadily and now boasts a market capitalization of $500 million. This milestone was reached just as the partnership with BNY Mellon was revealed , reflecting growing institutional interest in Ripple’s stablecoin solution.

Ripple’s stablecoin is aimed at enterprise use, offering a secure and compliant option for cross-border transactions, on-chain payments, and tokenized asset trading. With support from major financial players and increasing demand from institutions, RLUSD is emerging as a serious contender in the stablecoin market.

New Laws May Accelerate Stablecoin Adoption

Henrik Andersson, chief investment officer at Apollo Capital, supported Garlinghouse’s forecast. “The $1–2 trillion market cap for stablecoins is in line with our prediction,” Andersson told Cointelegraph, noting that banks, fintech companies, and even major retailers are beginning to develop their own stablecoins.

Andersson and other analysts pointed to the GENIUS Act in the United States as a potential game-changer. If passed into law, the bill would give stablecoins the status of legal tender, offering much-needed regulatory clarity and opening the door for broader adoption across the financial system.

Nick Ruck, director at LVRG Research, echoed the sentiment. He said that a crypto-friendly Securities and Exchange Commission (SEC) combined with the GENIUS Act could “rapidly expand” the industry and push the stablecoin market toward the trillion-dollar mark.

Ripple Moves Toward Full U.S. Compliance

In its ongoing efforts to become a fully regulated financial institution, Ripple has submitted applications to the U.S. Office of the Comptroller of the Currency (OCC) for a national trust bank charter. This would allow Ripple to operate under federal banking rules and hold customer deposits directly.

The company has also applied for a Federal Reserve Master Account, which would grant Ripple access to the U.S. payment system. Garlinghouse said these moves reflect Ripple’s goal to build a “bridge between traditional finance and decentralized finance.”

As more institutional money flows into digital assets, firms like Ripple are positioning themselves to serve as a conduit between conventional banks and the crypto economy.

XRP Price Surges Amid Positive Developments

Ripple’s native token XRP has also seen a notable increase in value. This week, it climbed 7% to $2.42—its highest level in seven weeks. The rally followed Ripple’s revealed that RLUSD would be integrated with Transak, a major cryptocurrency payment platform that enables fiat-to-crypto transactions.

This integration is expected to boost RLUSD adoption and provide easier access to both the stablecoin and XRP for users and institutions alike.

Conclusion

With a strong foundation in compliance and a growing ecosystem, Ripple is well-positioned to capitalize on the booming stablecoin sector. Backed by traditional banking partners like BNY Mellon and supported by favorable regulatory trends, RLUSD and the broader stablecoin market appear poised for significant expansion. If the $1–2 trillion forecast holds true, Ripple could emerge as a key player in this new financial era.