Ripple CEO Brad Garlinghouse stated that it is widely believed that the stablecoin market could grow nearly tenfold in the coming years.
Currently, the market capitalization of the stablecoin industry is about $250 billion, and "many believe it will reach $1 trillion to $2 trillion within a few years," Garlinghouse said on CNBC's "Squawk Box" on Wednesday (July 9).
He added that the growth behind it is "profound" and mentioned that Ripple entered the market later, partly because the company uses stablecoins in the payment flows of its institutional clients.
"Given our institutional background and compliance, we can participate in this [stablecoin] market," he said, confirming that future growth will be beneficial for the company.
These comments were made when Garlinghouse announced that BNY Mellon would become the custodian for the company's Ripple dollar-pegged asset stablecoin.
Ripple launched its enterprise-focused stablecoin RLUSD at the end of 2024. Since then, its market capitalization has grown to $500 million, reaching this milestone on Wednesday.
Henrik Andersson, Chief Investment Officer of Apollo Capital, agreed with Garlinghouse's prediction and told Cointelegraph on Thursday (July 9), "A stablecoin market cap of $1 trillion to $2 trillion aligns with our forecasts. We see fintech companies, banks, social networks, and large retailers launching their own stablecoins."
Andersson cited Tether's profitability as an example of the business's profit potential.
"The next catalyst for stablecoin adoption will be the GENIUS Act in the U.S., which will make stablecoins legal tender," he added.
Stablecoin legislation passed the Senate vote in June and is expected to become law this month.
Nick Ruck, head of LVRG Research, told Cointelegraph, "A friendly SEC and the GENIUS Act could allow the crypto industry to expand rapidly, with the stablecoin market potentially reaching a market cap of $1 trillion to $2 trillion in a few years."
Ripple primarily serves institutional clients and aims to fully comply with U.S. regulatory requirements to operate within the same framework as banks and financial institutions.
Earlier this month, Ripple applied for a banking license with the Office of the Comptroller of the Currency (OCC).
Garlinghouse stated that the company has also applied for a Federal Reserve master account, adding, "We believe that the key to cryptocurrency and decentralized finance is to build a bridge between traditional finance and DeFi."
This week, Ripple also announced that its stablecoin received a significant boost through integration with major cryptocurrency payment platform Transak.
The company's cross-border payment token XRP has risen 7% since Monday (July 6), trading at $2.42 at the time of writing, marking its highest price in seven weeks.
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Original article: “Ripple CEO says many believe stablecoins will soar to $2 trillion in a few years”
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