XRP’s Ripple Sees Stablecoin Market Near $1 Trillion Surge

XRP’s growth continues to gain momentum as Ripple’s CEO, Brad Garlinghouse, projects an explosive future for stablecoins, suggesting the market could swell to as much as $1 to $2 trillion in the coming years. Speaking on CNBC’s “Squawk Box,” Garlinghouse expressed confidence in the accelerating expansion of the stablecoin sector, which currently holds a market cap of approximately $260 billion.

Garlinghouse described the current pace of development as “profound,” stressing that the company’s later-than-expected move into this space was a strategic progression. Before launching its own stablecoin, Ripple had already integrated stablecoins into its institutional payment processes, which helped inform the design and deployment of its USD-backed asset.

Ripple Teams Up with BNY Mellon to Safeguard RLUSD

Ripple’s stablecoin, RLUSD, recently received a notable boost as Ripple revealed that BNY Mellon would manage the reserves supporting the coin. BNY Mellon will oversee both the US dollar cash and Treasury bills that back RLUSD, reinforcing trust and stability behind the asset. This new role, announced on CNBC, pairs RLUSD with one of the United States’ most respected institutions in financial custody.

This agreement, disclosed earlier this week, ensures every RLUSD token remains fully redeemable on a one-to-one basis with US dollars, under regulatory structures akin to money-market fund criteria. This level of oversight and transparency is aimed at increasing investor and institutional trust in RLUSD and similar digital assets.

BNY Mellon’s increasing footprint in the crypto landscape aligns with its broader strategy dating back to 2021, when it created a division specifically to handle digital assets. By 2022, the financial powerhouse had started working with institutional crypto clients, signifying its long-term commitment to blockchain and cryptocurrency infrastructure. RLUSD, launched in December 2024, operates across both Ethereum and the XRP Ledger and has shown rapid growth since entering the evolving stablecoin marketplace.

An integral component of RLUSD is its alignment with anticipated U.S. legislation, specifically the GENIUS Act — a bipartisan proposal that seeks to regulate stablecoins by enforcing federal reserve transparency and full-asset backing. This planned regulation supports significant participation from major retail and banking entities. Companies like Amazon and Walmart have taken a clear interest in the stablecoin space, which continues to attract new institutional players.

Analysts Disagree on Stablecoin Market Trajectory

While optimism about the future of stablecoins is widespread, not all industry voices are singing the same tune. Research from Standard Chartered pegs the sector’s growth potential at $2 trillion by 2028, while broker Bernstein expects it could soar as high as $4 trillion within the next decade.

Despite these bullish projections, J.P. Morgan remains cautious. A recent outlook from the banking giant suggests that stablecoin growth may not exceed $500 billion by 2028. The firm argues that current market conditions and the limited adoption of stablecoins in everyday transactions make the trillion-dollar forecasts overambitious.

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Still, Ripple remains committed to strengthening its presence in the digital monetary space. With RLUSD growing steadily and gaining institutional support, Ripple’s XRP Ledger may play an increasingly pivotal role in transforming how digital assets are issued, stored, and traded in the next phase of financial evolution.