Ripple's CEO Brad Garlinghouse predicted an explosive growth in the stablecoin market. He stated that "the global stablecoin market, currently around $250 billion, will grow to $1-2 trillion in the coming years" and expressed confidence that Ripple will also benefit from this growth.
In an interview with CNBC's 'Squawk Box', Garlinghouse said, "Fintech, banks, and large retail companies are expanding their own stablecoin issuance" and "institutional demand and improved regulatory environment will drive market growth".
Ripple launched its enterprise stablecoin RLUSD late last year, surpassing a market capitalization of $500 million. Recently, they designated BNY Mellon as the official custodian of RLUSD, accelerating their institutional channel expansion. Garlinghouse evaluated that "cooperation with BNY Mellon is an important advancement in increasing the transparency and safety that institutions demand".
Industry experts also offered optimistic forecasts. Henrik Andersson, CIO of Apollo Capital, said "growth to $1-2 trillion is a natural trend" and "institutional and corporate participation is rapidly increasing". Nick Luck, Director of LVRG Research, also analyzed that "with the SEC's friendly stance and the GENIUS Act, the market will grow even faster".
Meanwhile, Ripple has applied for a bank license with the Office of the Comptroller of the Currency (OCC) with the goal of full regulatory compliance in the United States and has completed its application for a Federal Reserve master account. Ripple's payment token XRP was traded at $2.42, up 4.5% on the day.
