Ripple CEO Brad Garlinghouse addressed various aspects of the company’s strategy during a recent discussion at the Economic Club of New York, where he sidestepped a direct question about the possibility of Ripple acquiring a bank. Instead, he reiterated the company’s institutional-first approach, highlighting how clearer regulatory frameworks in the U.S. are already generating demand for stablecoins and payments using the XRP Ledger.
When prompted by moderator James Hasso about whether Ripple would consider buying a bank or forming closer partnerships, Garlinghouse opted to avoid the question. He emphasized Ripple’s long-standing decision to embrace banks as customers rather than competing against them, which he framed as a unique, contrarian approach compared to the early crypto culture.
Garlinghouse noted that Ripple’s strategy has been to position itself in collaboration with traditional financial institutions (tradfi) rather than against them. He stated, “If we want these technologies to have the biggest impact on the largest number of people, banks are the touch point for people in their financial services relationships.” This stood in stark contrast to the early crypto mentality of creating an alternative financial ecosystem that was anti-bank and anti-government.
The conversation then shifted to Ripple’s regulatory strategy concerning its stablecoin business. Garlinghouse pointed out that Ripple launched its RLUSD stablecoin 13 months ago and asserted that it now ranks as one of the top five stablecoins in terms of market presence. He attributed this success to Ripple’s proactive approach to regulation, emphasizing the importance of oversight to foster institutional trust.
He mentioned that Ripple holds a trust license from the New York Department of Financial Services and a conditional charter from the Office of the Comptroller of the Currency (OCC), describing the latter as an additional safeguard for their stablecoin operations. “We want institutions to look at us as going above and beyond to ensure there’s oversight, so there are no questions,” Garlinghouse explained.
When asked about the potential impact of future U.S. legislation on stablecoin adoption, he referenced the Genius Act, which passed under President Trump. Garlinghouse observed a noticeable increase in stablecoin activity post-enactment, suggesting a similar outcome could occur if the Clarity Act is approved, as clearer guidelines would empower corporate boards and financial officers to engage more actively.
He emphasized that operational utility is crucial for corporates, particularly the ability to transact using stablecoins around the clock. “Being able to make a payment on a Sunday afternoon sometimes is important,” he noted, underscoring Ripple’s focus on simplifying and speeding up payment processes.
On the subject of tokenization, Garlinghouse expressed cautious optimism but acknowledged industry challenges. While he supported the idea that many assets will eventually be tokenized—echoing sentiments from industry leaders like BlackRock CEO Larry Fink—he cautioned that the execution of tokenization efforts will vary by sector, suggesting that domain experts will need to lead these initiatives, especially in areas like insurance.
As the discussion wrapped up, XRP was trading at $1.4027, reflecting ongoing interest and activity in the cryptocurrency market.
