Main Points:
- Bank-Issued Stablecoins May Be Overhyped: Ripple’s CEO argues that bank-issued coins face adoption and interoperability challenges in a market led by neutral players like Tether and USDC.
- USD Dominance and the Rise of Other Fiat-Pegged Tokens: While USD-backed coins account for over 90% of supply today, shifts in global reserve currency share may diversify stablecoin issuance.
- RWA Tokenization Surges: Regulatory clarity has driven a 260% rally in tokenized real-world assets, pushing the RWA market past $23 billion in early 2025.
- Stablecoin Legislation Accelerates: The U.S. Senate advanced the GENIUS Act in June 2025, marking the first comprehensive U.S. stablecoin framework and fueling industry momentum.
- APAC Emerges as a Strategic Hub: Early regulatory frameworks and pressing cross-border payment needs have positioned Asia-Pacific, particularly Singapore, as a hotbed for blockchain innovation, with Ripple doubling down on R&D and partnerships.
Overhyped Bank-Issued Stablecoins
At the APEX 2025 conference in Singapore, Ripple CEO Brad Garlinghouse labeled bank-issued stablecoins as “overhyped,” noting that although major banks have flirted with concepts like JPM Coin for years, true utility depends on broad acceptance across institutions and chains. He emphasized that neutral issuers—such as Tether (USDT) and Circle (USDC)—already fulfill that role and will likely continue dominating the market. Meanwhile, Ripple’s own project, RLUSD, holds significant promise for financial institutions seeking robust dollar-based digital settlement solutions .
Critics of bank-issued coins point out two main hurdles: interoperability and network effects. Even if Bank A issues a stablecoin on one blockchain, there is no guarantee Bank B—or corporates—will adopt it, fracturing liquidity across disparate chains and pools. By contrast, established stablecoin issuers have already built expansive on-ramps and cross-chain bridges, managing 88% of transaction value in 2024 through crypto trading pairs, though only 6% of transactions involved real-world payments .
The Future of Non-USD Stablecoins
Today, 90–95% of stablecoin supply is backed by the U.S. dollar, with USDT and USDC leading the charge. At APEX 2025, Garlinghouse projected that as the dollar’s share of global reserves gradually declines—from the current roughly 60–65%—the proportion of dollar-backed stablecoins could mirror that trajectory in a decade. He suggested that non-USD stablecoins will gain ground, especially as emerging economies seek digital assets pegged to local currencies to preserve domestic monetary sovereignty .
Moreover, in regions where the national currency is volatile or subject to hyperinflation, local stablecoins pegged to stronger fiat (often the dollar) or baskets of assets may offer businesses a more predictable medium for trade, treasury, and supply-chain finance. However, service providers must overcome regulatory fragmentation: each jurisdiction may impose unique reserve requirements, custody rules, and sanctions screening protocols, complicating issuance and cross-border settlement.
RWA Tokenization: A Clear Trend
Real-world asset (RWA) tokenization has exploded, with the total tokenized RWA market rising 260% in 2025 to over $23 billion—a surge driven by regulatory clarity and institutional embrace. In the U.S., recent guidance from regulators has demystified custody, settlement, and securities-law considerations, encouraging banks, asset managers, and specialty finance firms to mint digital securities representing everything from treasury bonds to real estate-backed debt .
Monica Long, Ripple’s President, pointed out that clear rules—such as those emerging from Singapore’s MAS frameworks and pending U.S. legislation—have transformed RWA tokenization from a niche experiment into a scalable infrastructure play. She noted that stakeholders in custody, compliance, and treasury operations now view tokenization as a means to reduce settlement risk, enhance transparency, and enable fractional ownership models that democratize access to traditionally illiquid assets.
Stablecoin Legislation Takes Shape: The GENIUS Act
On June 11, 2025, the U.S. Senate achieved cloture on the GENIUS Act (S. 1582), advancing what would become the first dedicated U.S. stablecoin law. The bill establishes a federal framework for issuance, reserve management, and consumer protections, and it must still reconcile over 120 amendments before final passage. Supporters argue that the GENIUS Act will accelerate blockchain adoption by clarifying capital, liquidity, and risk requirements for issuers, while critics warn that it may overlook anti-money laundering safeguards for on- and off-ramps .
Garlinghouse praised the momentum in Washington, stating that “perfection is the enemy of done”—implying that even imperfect legislation is preferable to regulatory stasis. Without the GENIUS Act, he contends, large banks are unlikely to launch compliant stablecoins due to legal uncertainty and reputational risk. Passage by August 2025 could unlock significant institutional interest, especially if accompanied by the Market Structure Bill, which further refines definitions for securities, commodities, and currencies.
APAC Market: Ripple’s Strategic Position
The Asia-Pacific region has emerged as a global frontrunner in blockchain innovation thanks to early regulatory clarity and stark cross-border payment needs. In Singapore alone, Ripple reports that 40–50% of its remittance volume flows through its local hub. The Monetary Authority of Singapore’s proactive guidance on digital assets and tokenized offerings has attracted fintech partners and developers, creating a virtuous cycle of adoption and experimentation .
To capitalize on this momentum, Ripple has committed $5 million to expand its University Blockchain Research Initiative (UBRI) across six APAC countries, fostering academic collaboration in South Korea, Japan, Taiwan, Australia, and beyond. The company’s partnerships extend to incumbent banks, tech startups, and regulatory bodies, solidifying its role as a bridge between traditional finance and decentralized innovation.
Conclusion
The stablecoin ecosystem stands at a pivotal crossroads. While bank-issued coins face practical and network-effect limitations, neutral issuers like Tether, Circle, and potentially RLUSD continue to dominate. The gradual decline of the U.S. dollar’s reserve share will open space for diverse fiat-pegged tokens, even as U.S. regulators fast-track the GENIUS Act to bring order to the market. Simultaneously, the RWA tokenization boom—bolstered by renewed regulatory clarity—promises to unlock trillions in liquidity and democratize asset ownership. Finally, APAC’s forward-looking stance underscores the importance of clear rules and pressing cross-border demands, making it a crucible for blockchain use cases that may soon scale globally.
