Ripple CEO Brad Garlinghouse said there is a widespread belief that the Stablecoin market can grow almost ten times over the next few years.
The Stablecoin industry is currently around $ 250 billion in market capitalization, and “many people think it will reach $ 1 to $ 2 trillion in a small year,” Says Garlinghouse in CNBC’s “Squawk Box” on Wednesday.
He added that the growth behind it was “deep,” saying that Ripple joined the latter market slightly because the firm uses stablecoins in its payment flows for institutional customers.
“We can participate in this market (Stablecoin) provided on our institutional background and regulatory compliance,” he said, confirming that growth in the foreground will serve properly.
Comments come up as a Garlinghouse announced That BNY Mellon will be the company’s stablecoin custodian for the Ripple USD dollar-pegged asset.
Ripple launched its own business -focused stablecoin, RlusdIn late 2024. Since then, its market capitalization has grown to $ 500 million, a milestone it reached Wednesday.
Big growth for stablecoins
Apollo Capital’s chief investment official Henrik Andersson, agreed at Garlinghouse’s prophecy, telling Cointelegraph on Thursday, “The $ 1-2 trillion market cap for stablecoins is in line with our prediction.”
“We see finteches, banks, social networks, and big retail everyone who launches their own stablecoins.”
Andersson mentioned Tether’s profitability as an example of how business could be benefited.
“The next catalyst for the adoption of Stablecoin is the Genius Act in the US, which will make Stablecoins legal,” he added.
The law of stablecoin passed a vote in the Senate in June and is likely to be made in law this month.
“The crypto-friendly SEC, along with the Genius Act, can align the crypto industry to quickly expand, with the potential for the Stablecoin market to reach $ 1-2 trillion in the market cap in a few years,” Nick Ruck, director of LVRG Research, told Cointelegraph.
Ripple Banking License
Ripple, which mainly serves institutional clients, aims to fully comply with the US so that it can operate under the same framework as banks and financial institutions.
Earlier this month, Ripple applied for a banking license with the US office of the Currency (OCC) Comptroller.
The firm also applied for a Federal Reserve Master Account, Garlinghouse said, which added, “We think the main thing for crypto and decentralized finance (…) is building bridges between traditional finances and defi.”
XRP hits seven weeks tall
This week, Ripple too announced That its stablecoin has received a significant strengthening by integrating the transak, a major cryptocurrency payment platform.
Firm’s cross-border payments are token XRP (XRP) has rarely 7% from Monday and trades at $ 2.42 at the time of writing, its highest price in seven weeks.
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