Ripple’s RLUSD Stablecoin Hits $500 Million Milestone as Institutional Demand Grows
Ripple CEO Brad Garlinghouse believes the stablecoin market is on the verge of a massive expansion, potentially reaching $1 to $2 trillion in market capitalization within just a few years. His remarks come as Ripple’s own stablecoin, RLUSD, surpassed $500 million in market cap since its late 2024 launch.
Speaking on CNBC’s Squawk Box, Garlinghouse described the growth of the stablecoin sector as “profound”, noting that demand from institutional clients has been a key factor. Ripple originally entered the stablecoin space to support its payment flows, and now aims to deepen its presence through regulatory compliance and enterprise-grade infrastructure.
“We can participate in this market given our institutional background and regulatory compliance,” Garlinghouse said.
https://cointelegraph.com/news/stablecoin-markets-reach-2-trillion-in-a-few-years-ripple-ceo
BNY Mellon Chosen as RLUSD Custodian
As part of its expansion strategy, Ripple named BNY Mellon as the official custodian for its dollar-pegged RLUSD. This partnership signals Ripple’s intent to align its operations with traditional finance standards, paving the way for broader adoption among banks and enterprises.
Meanwhile, Ripple has applied for a U.S. banking license through the Office of the Comptroller of the Currency and is seeking a Federal Reserve Master Account. The goal, according to Garlinghouse, is to build a bridge between decentralized finance and traditional banking systems.
Legislative Tailwinds Could Accelerate Growth
Market analysts agree with Garlinghouse’s projection. Apollo Capital CIO Henrik Andersson echoed the $1–2 trillion forecast, pointing to a growing list of fintechs, banks, and social media platforms launching their own stablecoins. He also emphasized the GENIUS Act, a U.S. bill that could classify stablecoins as legal tender and catalyze institutional adoption.
“The GENIUS Act could serve as the next major catalyst for stablecoin expansion,” said Andersson.
According to Nick Ruck of LVRG Research, favorable regulation combined with SEC leadership that supports crypto innovation could unleash the full potential of the stablecoin market.
XRP Rallies on Ripple Developments
In tandem with the RLUSD news, XRP, Ripple’s native token used for cross-border payments, rose 7% this week to trade at $2.42, its highest level in seven weeks. The surge reflects growing investor confidence in Ripple’s long-term positioning within the crypto-financial ecosystem.
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