Ripple CEO Predicts Explosive Growth for Stablecoin Market as BNY Mellon Backs RLUSD

Speaking at a CNBC interview, Ripple CEO Brad Garlinghouse speculated that the stablecoin market would explore to nearly tenfold within the next few years.

When asked for the specific numbers, Garlinghouse said that the market could reach a combined market capitalisation of $1 trillion to $2 trilion, up from the $260 billion today.

But Ripple hasn't been the quickest company to launch their own stablecoin, given how they only released their own RLUSD back in December 2024 on Ethereum and the XRP Ledger.

Garlinghouse explained that the reason behind this was rooted in the company's reliance on other stablecoins for their institutional payment flows.

Garlinghouse admitted that it was a huge gamble to delay the release of their own stablecoin while waiting for the right timing to release their own stablecoin.

And Ripple's bet seems to pay off, as in less than 7 months Ripple's RLUSD exceeded $500 market cap.

Garlinghouse’s remarks coincided with Ripple’s announcement that the Bank of New York Mellon (BNY Mellon) will serve as the custodian for the USD cash and Treasury bills backing its RLUSD stablecoin.

This partnership provides RLUSD with a highly reputable banking partner as the stablecoin scales.

As one of the largest custody banks in the United States, BNY Mellon will be responsible for safeguarding and managing the liquidity of RLUSD’s reserves, ensuring that holders can redeem the stablecoin for USD on a 1:1 basis under controls similar to those used for money-market funds.

BNY Mellon’s involvement reflects its ongoing expansion into digital asset services, following the establishment of its digital asset unit in 2021 and the onboarding of institutional crypto clients in 2022.

Since its launch in December 2024 on Ethereum and the XRP Ledger, RLUSD has rapidly gained traction within the $260 billion stablecoin market.

RLUSD is designed to comply with forthcoming bipartisan legislation in the U.S., specifically the GENIUS Act, which will introduce federal standards for reserve disclosures and asset backing.

The stablecoin sector continues to attract significant attention from global corporations such as Amazon and Walmart, as well as top-tier banks exploring opportunities in this expanding ecosystem.

J.P Morgan remains Skeptical Of The Stablecoin Market

While Ripple and other industry leaders are optimistic about the sector’s trajectory, not all analysts share the same outlook.

Standard Chartered projects concurred with Garlinghouse, stating that the stablecoin market could reach $2 trillion by 2028, while Wall Street firm Bernstein forecasts supply could climb to $4 trillion within the next decade.

However, J.P. Morgan remains skeptical, estimating more modest growth to $500 billion by 2028 and suggesting that trillion-dollar projections may be premature given the current limited adoption of stablecoins.

As regulatory clarity improves and institutional partnerships deepen, the stablecoin market is positioned for significant transformation.

With major financial institutions like BNY Mellon backing new entrants such as RLUSD, and legislative frameworks like the GENIUS Act on the horizon, the next few years could see stablecoins become a central pillar of the global digital asset economy—even as debate continues over the pace and scale of that growth.