The stablecoin market could potentially balloon nearly tenfold within a few years, according to Ripple CEO Brad Garlinghouse.
Appearing on CNBC’s “Squawk Box” on Wednesday, Garlinghouse highlighted the sector’s momentum and said that many expect stablecoins to reach a combined market capitalization of $1 trillion to $2 trillion, up from around $260 billion today.
The exec added that the current growth rate is “profound,” while explaining that Ripple’s late entry into the stablecoin sector was a result of using stablecoins in its institutional payment flows prior to launching its own USD-backed asset.
BNY Mellon Backs Ripple’s RLUSD
Garlinghouse’s comments came as Ripple announced that the Bank of New York Mellon will now handle the USD cash and Treasury bills that back its RLUSD stablecoin.
Meanwhile, the partnership, which was disclosed on Wednesday, secures RLUSD a reputable banking partner as it scales further. As one of the largest custody banks in the US, BNY Mellon will safeguard and manage the liquidity of the reserves backing every RLUSD issued. It has been tasked with ensuring that holders can redeem the stablecoin for USD on a 1-to-1 basis under standards similar to money-market fund controls.
BNY’s support for RLUSD aligns with its gradual expansion into crypto services since establishing a digital asset unit in 2021 and welcoming institutional crypto clients in 2022. Ripple’s RLUSD, which launched in December 2024 on Ethereum and the XRP Ledger, has grown rapidly within the $260 billion stablecoin market.
RLUSD is designed to align with upcoming bipartisan legislation in the US, the GENIUS Act, which will introduce federal standards for reserve disclosures and backing. The stablecoin industry continues to attract interest from major corporations like Amazon and Walmart, alongside top-tier banks exploring entry into this expanding ecosystem.
J.P. Morgan Throws Cold Water on Hype
Apart from Ripple’s outlook, Standard Chartered anticipates the stablecoin sector could expand to $2 trillion by 2028, while Bernstein expects supply to climb toward $4 trillion within ten years.
J.P. Morgan, however, remains skeptical. The investment banking behemoth estimated growth to just $500 billion by 2028, and argued that trillion-dollar expectations are premature amid the lack of widespread use of stablecoins.
The post Ripple CEO Says Stablecoins on the Verge of a Trillion-Dollar Boom appeared first on CryptoPotato.
The stablecoin market could expand tenfold, according to Ripple, as BNY Mellon steps in to custody reserves for RLUSD. AA News, Crypto News, Ripple, Stablecoins
This articles is written by : Nermeen Nabil Khear Abdelmalak
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