According to Ripple CEO Brad Garlinghouse, the stablecoin market could increase to $2 trillion. This discussion took place during an interview on CNBC.
Growth Prospects of Stablecoins
During his appearance on CNBC's 'Squawk Box,' Garlinghouse noted that many experts expect the market capitalization of stablecoins to rise from the current $260 billion to between $1 and $2 trillion. He emphasized that the current growth rate is 'profound' and that Ripple has been utilizing stablecoins in its institutional payment flows.
BNY Mellon's Support for RLUSD
Garlinghouse’s comments coincided with Ripple's announcement that the Bank of New York Mellon will manage the cash and Treasury bills backing its RLUSD stablecoin. This partnership secures RLUSD a reputable banking partner as it further scales, with BNY Mellon managing the liquidity of the reserves to ensure holders can redeem the stablecoin for USD on a 1-to-1 basis.
Skepticism from J.P. Morgan
Despite the optimistic projections from Ripple and Standard Chartered, predicting a rise of stablecoins to $2 trillion by 2028, J.P. Morgan expresses skepticism. The investment bank estimates growth to only $500 billion by 2028, arguing that trillion-dollar expectations are premature due to the lack of widespread adoption of stablecoins.
The stablecoin market continues to attract the attention of major corporations and banks. However, opinions on its future vary widely, highlighting the uncertainty in this rapidly evolving sector.
