Ripple CEO Brad Garlinghouse has discussed the current state of the stablecoin industry and how much the industry could be worth in the next few years. He also commented on why his firm’s RLUSD stablecoin has the potential to dominate the market at some point.
Ripple CEO Breaks Silence On Stablecoin Market Growth
In a CNBC interview, the Ripple CEO noted that the stablecoin market is worth around $250 billion and that many predict that it could grow to between $1 trillion and $2 trillion over the next few years. He further remarked that the growth of these stablecoins has been profound. Tether’s USDT currently leads the way with a market cap of almost $160 billion.
Indeed, experts like the US Treasury Secretary, Scott Bessent, have predicted that stablecoins could reach $2 trillion over the coming years. Bessent also recently alluded to reports that stablecoins could grow into a $3.7 trillion market by the end of the decade. He believes this is more likely with regulations like the GENIUS Act.
Ripple CEO Brad Garlinghouse is a stakeholder in the stablecoin market, as his firm is the issuer of the RLUSD stablecoin. Garlinghouse admitted that they joined the market relatively late, although they had already been using stablecoins in their payment flows for institutional customers. He indicated that this was what prompted the move to issue the RLUSD stablecoin, in order to serve their clients better.
Garlinghouse is confident that the RLUSD stablecoin will benefit from the growth ahead, especially as they continue to serve their institutional clients. Meanwhile, the Ripple CEO noted how the stablecoin has already crossed the $500 million market cap milestone in just a few months since its launch. CoinMarketCap data shows that the stablecoin’s market cap is up over 3% in the last 24 hours, reaching $517 million.
Plans To Grow The RLUSD Stablecoin
As part of the plans to grow the RLUSD stablecoin, Ripple has applied for a national banking license with the OCC. If approved, the company’s stablecoin will be subject to the regulatory purview of the US Office of the Comptroller of the Currency (OCC) and the New York Department of Financial Services (NYDFS). The Ripple CEO stated that the dual nature of that regulation is a new and unique benchmark for trust in the stablecoin market.
Garlinghouse again commented on this move during the CNBC interview. The Ripple CEO noted that his firm has been focused on compliance and adhering to existing regulations. He suggested that the RLUSD stablecoin is on course to become the most regulated stablecoin, which would give them an edge in the stablecoin market.
Meanwhile, it is worth noting that Ripple has partnered with BNY Mellon to custody RLUSD’s USD reserves. The crypto firm is confident that this would further build trust in its stablecoin.
Featured image from Getty Images, chart from Tradingview.com
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