tl;dr
Ripple CEO Brad Garlinghouse stated that the company uses XRP selectively alongside stablecoins, focusing on solving cross-border payment challenges. Ripple entered the stablecoin market later but has seen significant growth, with its stablecoin RLUSD surpassing a $500 million market cap. The stable...
During a Wednesday interview with CNBC, Ripple CEO Brad Garlinghouse emphasized that the company uses XRP selectively, stating, "We use stablecoins, we use XRP where it makes sense." He highlighted Ripple’s core mission as a payments company focused on solving cross-border payment challenges. Garlinghouse recalled that stablecoins have become a significant part of Ripple's operations, explaining that the company entered the stablecoin market relatively late due to prior usage of stablecoins in institutional payment flows.
The market capitalization of Ripple’s stablecoin RLUSD recently surpassed $500 million, a milestone that Garlinghouse describes with satisfaction, noting strong growth. He pointed out the stablecoin industry's current size at around $250 billion, with industry analysts projecting expansion to between $1 trillion and $2 trillion in the coming years. This represents substantial room for growth and opportunity within the sector.
In a major strategic move, Ripple announced the selection of BNY Mellon as the primary custodian for the reserves that back the RLUSD stablecoin. Garlinghouse praised BNY Mellon as one of the most trusted and well-capitalized partners in the financial industry, underscoring the importance of collaboration with established, regulated entities to build trust in the stablecoin ecosystem.
Garlinghouse also addressed the broader landscape of finance, dismissing the notion that crypto will dominate or replace traditional finance. Instead, he advocates for a hybrid approach that incorporates the best innovations from crypto into the conventional financial system, stating, "The world isn’t going to be taken over by crypto. Instead, we think about how to take the best of what crypto brings, and bring it to traditional finance."