Stablecoin Market Could Hit $2 Trillion in Just a Few Years, Says Ripple CEO
Ripple CEO Brad Garlinghouse believes the stablecoin market is poised for explosive growth, potentially reaching $1–2 trillion in market capitalization within just a few years. Speaking on CNBC’s Squawk Box on Wednesday, Garlinghouse described the expansion of the stablecoin sector as “profound,” citing increased institutional interest and regulatory clarity as key growth drivers.
Currently, the global stablecoin market stands at approximately $250 billion, but Garlinghouse noted that “many people think it will reach $1 to $2 trillion in a handful of years.”
Ripple Expands into Stablecoins with RLUSD
Garlinghouse’s comments came as Ripple announced that BNY Mellon would act as the custodian for its U.S. dollar-pegged stablecoin, RLUSD. Ripple officially launched RLUSD in late 2024, and as of Wednesday, the token’s market capitalization has reached $500 million — a significant milestone for the company’s first foray into the stablecoin space.
Garlinghouse explained that Ripple entered the stablecoin market later than others because it had already been using stablecoins in its institutional payment flows. Now, with its deep regulatory and banking relationships, the firm sees an opportunity to scale its presence in the space.
“We can participate in this [stablecoin] market given our institutional background and regulatory compliance,” Garlinghouse said.
Industry Leaders Echo $2 Trillion Forecast
Garlinghouse’s projection is echoed by others in the industry. Henrik Andersson, CIO of Apollo Capital, told Cointelegraph:
“The $1–2 trillion market cap for stablecoins is in line with our prediction.”
Andersson emphasized the growing trend of fintechs, banks, social networks, and retailers launching their own stablecoins, pointing to Tether’s profitability as a sign of the sector’s immense potential.
He also highlighted the upcoming GENIUS Act as a major catalyst for adoption. The bill, which passed the Senate in June, could be signed into law this month, potentially classifying stablecoins as legal tender in the U.S.
Nick Ruck, director at LVRG Research, added:
“The crypto-friendly SEC, along with the GENIUS Act, can align the crypto industry to rapidly expand, with the potential for the stablecoin market to reach $1–2 trillion in a few years.”
Ripple Pursues Banking License and Fed Access
As part of its long-term strategy, Ripple is seeking to fully integrate into the U.S. financial system. Earlier this month, the company applied for a banking license from the U.S. Office of the Comptroller of the Currency (OCC).
It also submitted an application for a Federal Reserve Master Account, a key requirement for banks to access the Federal Reserve’s payment infrastructure.
Garlinghouse stated that the ultimate goal is to build bridges between traditional finance and decentralized finance (DeFi), reinforcing Ripple’s commitment to regulatory compliance and financial interoperability.
XRP Price Hits 7-Week High
Ripple’s native token, XRP, has also seen a resurgence, rallying 7% since Monday and reaching $2.42, its highest level in seven weeks. The rise follows news that RLUSD has integrated with Transak, a major cryptocurrency payments platform, improving accessibility and adoption for Ripple’s stablecoin.
With growing momentum, favorable legislation, and institutional backing, Ripple’s expansion into stablecoins — coupled with broader market trends — may help propel the sector toward multi-trillion-dollar valuations in the near future.
