Ripple CEO Sees Stablecoin Market Hitting $2T as RLUSD Growth Accelerates

Ripple CEO Brad Garlinghouse believes the stablecoin market could grow nearly tenfold over the next few years, reaching a market capitalization of $1–2 trillion.

Speaking on CNBC’s “Squawk Box” on Wednesday, Garlinghouse noted the current stablecoin market sits around $250 billion but emphasized that “many people think it will reach $1 to $2 trillion in a handful of years,” citing the “profound” growth in the sector.

Garlinghouse explained Ripple’s relatively late entry into stablecoins was due to its prior use of stablecoins within institutional payment flows for its clients, allowing the firm to build compliance and regulatory frameworks before launching its asset. 

“We can participate in this market given our institutional background and regulatory compliance,” he added, highlighting the opportunity ahead for Ripple.

RLUSD Hits $500 Million Market Cap

The comments followed Ripple’s announcement that BNY Mellon would serve as the custodian for its enterprise-focused stablecoin, RLUSD, which launched in late 2024. RLUSD reached a milestone $500 million market cap on Wednesday, marking rapid adoption among Ripple’s institutional partners and payments clients.

Another potential growth catalyst is the GENIUS Act in the US, which passed a Senate vote in June and is expected to be signed into law this month, making stablecoins legal tender. Nick Ruck of LVRG Research added that the combination of a crypto-friendly SEC and the GENIUS Act could accelerate stablecoin adoption, pushing the sector toward the trillion-dollar milestone within years.

Ripple Targets US Banking Framework

Ripple’s ambitions align with its goal to integrate traditional finance with DeFi. Earlier this month, Ripple applied for a banking license with the US Office of the Comptroller of the Currency and a Federal Reserve Master Account, moves Garlinghouse described as essential for building bridges between traditional banking and decentralized finance systems.

In parallel, Ripple’s cross-border payments token XRP has also gained momentum, rallying 8% over the past week to trade at $2.45, while RLUSD received a boost through a new integration with Transak.