Ripple Sees Stablecoins as Key to Global Payments Innovation

Ripple is doubling down on stablecoins as the next major driver in revolutionizing global payments. At Consensus 2025 in Toronto, Jack McDonald, Senior Vice President of Stablecoins at Ripple, highlighted how stablecoins are transitioning from niche trading tools to foundational elements in international finance. McDonald emphasized that stablecoins represent a meaningful innovation for global payments, calling their evolution a pivotal turning point for financial infrastructure.

Speaking on a panel with Mark Greenberg, Head of Consumer at Kraken, McDonald noted a growing acceptance of stablecoins as modern alternatives to conventional payment systems. “They present a smoother, more affordable method for U.S. dollar transactions worldwide,” he said. Ripple’s recent initiative in launching RLUSD—a fully regulated and asset-backed stablecoin—reinforces the company’s mission to overhaul the friction-ridden systems used for cross-border payments.

Ripple’s entry into the stablecoin arena extends beyond experimentation. According to McDonald, stablecoins have already found real-world payment applications, making them central to Ripple’s strategy. “We entered this space because we’ve seen actual use cases in action,” he explained, noting that existing financial systems often fall short when it comes to cost and efficiency across borders.

Greenberg added weight to the conversation, critiquing the current methods of sending money internationally. “Moving money globally is far more complicated than it needs to be,” he said. “And stablecoins provide a scalable solution to that complexity. We are at an inflection point.”

Kraken, notably, is one of the founding members of the Global Dollar Network, a collaborative initiative between established crypto and traditional finance companies. This coalition supports USDG, a stablecoin designed to become a global standard for dollar-pegged digital currencies.

Looking ahead, both executives agreed that the development of yield-bearing stablecoins will define the next phase of growth. However, this evolution remains tightly linked to regulatory clarity. “If users are depositing funds, it makes sense they should be able to earn yields,” Greenberg argued. However, he highlighted that jurisdictional regulations, like the EU’s MiCA rules, restrict certain functionalities. For instance, USDG currently cannot offer yield services in Europe.

McDonald echoed similar thoughts regarding Ripple’s RLUSD. While the team is keen to enable yield features, such a move would likely require the token to be classified as a security in the United States. “That puts us on an entirely different regulatory path,” he said, acknowledging the complexities of compliance.

As stablecoins integrate further into mainstream financial systems over the next five years, both McDonald and Greenberg foresee them becoming background tools—commonplace and essential, much like SWIFT transfers or wire payments today. McDonald highlighted Ripple’s acquisition of prime broker Hidden Road as critical in this shift, paving the way for stablecoins to function as collateral and support cross-margin trading activities in capital markets.

Greenberg concluded with a future-forward vision, where stablecoins become so embedded that their usage is no longer a topic of conversation. “They’ll be part of the fabric of finance,” he predicted.

Related: Expert Advice: Sell XRP If You’re Confused

Read more: Stablecoins to Go Mainstream in 2025 After U.S. Regulatory Progress: Deutsche Bank