As regulatory clarity around stablecoins in the U.S. develops, Ripple emerges as a significant player in a sector that could greatly influence the U.S. Treasury market.
Ripple's Growing Interest in Stablecoins
Ripple officially entered the stablecoin ecosystem in late 2024 with the launch of RLUSD, a dollar-backed token. The backing model for RLUSD includes U.S. Treasury securities, fiat dollar reserves, and near-cash instruments, mirroring the practices of leading stablecoin issuers like Tether and Circle. In just six months, RLUSD has amassed a circulating supply worth over $321 million, placing it in the top tier of global stablecoins.
Strategic Ambitions: Ripple's Bid for Circle
Ripple extended a $4–5 billion offer to acquire Circle, the company behind USDC, the second-largest stablecoin by market capitalization. Although Circle declined the offer, it underscores Ripple's desire to expand its footprint within the digital dollar ecosystem. Circle has also filed for a $5 billion IPO in April 2025.
New Context for Stablecoins
The evolving regulatory landscape is a key catalyst for Ripple's strategic moves. The GENIUS Act has made significant progress in the Senate, proposing a comprehensive legal framework for stablecoin issuance in the U.S. According to Senator Bill Hagerty, stablecoin issuers are on track to become some of the largest holders of U.S. government debt by the end of the decade. Citibank projects that the stablecoin market could reach $2 trillion by 2028.
Ripple's aggressive expansion in the stablecoin sector may lead to it becoming one of the largest private holders of U.S. Treasuries, significantly reshaping the debt markets landscape.
