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

• Ripple CEO Brad Garlinghouse predicts the stablecoin market will grow from $250 billion to $1-2 trillion within a few years. 

• Ripple launched its stablecoin RLUSD in late 2024, and it has reached $500 million in market cap. 

• The company is applying for banking licenses and regulatory compliance to bridge traditional finance with crypto.

Ripple CEO Brad Garlinghouse forecasts explosive growth for the stablecoin market, predicting it could expand nearly tenfold from its current $250 billion valuation. On CNBC’s “Squawk Box” on Wednesday, Garlinghouse stated that industry experts believe the market will reach $1 to $2 trillion within a few years.

The cryptocurrency payment company’s entrance into the stablecoin sector comes as digital assets gain mainstream adoption. Ripple launched its enterprise-focused stablecoin RLUSD in late 2024, already achieving a $500 million market capitalization milestone this week.

Garlinghouse emphasized Ripple’s late but strategic entry into the stablecoin market. The company utilized stablecoins to pay institutional customers before launching its offering. “We can participate in this market given our institutional background and regulatory compliance,” he explained during the television appearance.

The announcement coincided with news that BNY Mellon will serve as custodian for Ripple’s dollar-pegged stablecoin, adding institutional credibility to the venture.

Industry Experts Support Growth Projections

Apollo Capital’s chief investment officer, Henrik Andersson, validates Garlinghouse’s optimistic outlook. The investment executive confirmed that the $1-2 trillion prediction aligns with their internal forecasts. Multiple sectors drive this expansion, with fintech companies, banks, social networks, and major retailers developing proprietary stablecoins.

Andersson pointed to Tether’s profitability as evidence of the sector’s lucrative potential. The established stablecoin issuer demonstrates how successful these digital assets can become when properly managed and regulated.

LVRG Research director Nick Ruck expects regulatory clarity to accelerate growth. The GENIUS Act, which passed Senate approval in June, could make stablecoins legal tender in the United States. This legislation and a crypto-friendly Securities and Exchange Commission create favorable conditions for rapid industry expansion.

Ripple Pursues Banking Compliance

Ripple continues expanding its regulatory footprint through traditional banking channels. The company recently applied for a banking license with the Office of the Comptroller of the Currency, seeking to operate under the same framework as established financial institutions.

The firm also applied to a Federal Reserve Master Account. Garlinghouse views these regulatory steps as essential for bridging traditional finance with decentralized finance systems.

Beyond stablecoins, Ripple’s native token XRP has benefited from recent developments. Since Monday, the cross-border payments token has rallied 7%, trading at $2.45 at press time. This represents XRP’s highest price level in seven weeks.