Brad Garlinghouse, Ripple’s CEO, recently shared his optimistic outlook on the stablecoin market’s future. He believes it’s poised for massive growth.
A Booming Market
Garlinghouse pointed out the stablecoin market’s current size—around $250 billion—and predicted it could balloon to $1 trillion to $2 trillion in the next few years. This growth is already impressive, with Tether (USDT) leading the pack at nearly $160 billion. Some experts, like US Treasury Secretary Scott Bessent, are even more bullish, forecasting a potential $3.7 trillion market by the end of the decade, particularly if regulations like the GENIUS Act pass.
Ripple’s Entry into the Arena
Ripple, with its own stablecoin RLUSD, is aiming to capitalize on this growth. Garlinghouse admitted they entered the market late but were already using stablecoins for institutional clients. This need drove the creation of RLUSD.
RLUSD has already made significant strides, surpassing a $500 million market cap in just a few months. It’s even seen a recent increase, currently sitting at over $517 million.
RLUSD’s Strategy for Success
Ripple’s strategy for RLUSD’s growth involves seeking a national banking license from the OCC. This would put RLUSD under the regulatory oversight of both the OCC and the NYDFS, a move Garlinghouse sees as a major step toward building trust and establishing a new benchmark for stablecoin regulation.
Garlinghouse emphasized Ripple’s commitment to compliance. He believes RLUSD’s focus on regulation will give it a competitive edge. Further bolstering trust, Ripple has partnered with BNY Mellon to securely hold RLUSD’s USD reserves.