Ripple Exec Reveals 2 Key Drivers of Stablecoin Market Growth

The stablecoin market is rapidly gaining attention from industry leaders, regulators, and Wall Street giants. New regulations, growing institutional interest, and increasing real-world utility are driving its growth. 

Let us have a look at what the experts have to say.

Utility and Institutional Demand To Drive The Next Wave

Reece Merrick, Senior Executive Officer and Managing Director in the Middle East and Africa at Ripple, highlights that the stablecoin market, currently valued at around $300 billion, is on track for remarkable growth.

He says that the rapid growth is being driven by new regulations, like the U.S. GENIUS Act, and stronger connections with fintech, showing how stablecoins are becoming increasingly important for stability and liquidity across the volatile financial ecosystems.

As stablecoins become central to the global financial system, the next wave of adoption will be driven by real-world use and institutional demand.

Ripple Leading the Push In Stablecoin Market

Ripple is at the forefront, taking full advantage of this growing market.

It recently partnered with SBI VC Trade, a subsidiary of SBI, to bring RLUSD to the Japanese market. SBI VC Trade has been a leader in Japan’s crypto space, handling stablecoins with an official license. This move will make stablecoins more accessible, reliable, and convenient for users in Japan.

Experts Weigh In On Stablecoin Market Potential

Treasury Secretary Scott Bessent believes that stablecoins will increase demand for U.S. Treasuries. He has also highlighted that the GENIUS Act provides the regulatory clarity needed for the stablecoin market to grow into a multitrillion-dollar industry.

“It’s a win-win-win for everyone involved: stablecoin users, stablecoin issuers, and the U.S. Treasury Department,” he said. 

Ripple CEO Brad Garlinghouse predicts the stablecoin market could jump nearly tenfold, from $250 billion to $2 trillion, in a few years.

Market Outlook By Wall Street Giants

Goldman Sachs says that we are at the start of a “stablecoin gold rush.” The bank notes that stablecoins currently make up a $271 billion global market, with USDC expected to grow $77 billion by 2027. It also points out that the potential total market for stablecoins is in trillions. 

Coinbase predicts that the U.S. dollar-backed stablecoin market could grow to $1.2 trillion by 2028. Standard Chartered is even more bullish, projecting it could hit $2 trillion by 2028.

However, JPMorgan sees stablecoins reaching $500 billion by 2028, driven mostly by crypto trading and DeFi (88%), with payments at just 6%. Overall, it sees moderate, crypto-driven growth, not a mainstream adoption boom.

Whether driven by payments, trading, or institutional demand, the stablecoin industry is on track for a multi-trillion-dollar future.