Stablecoins are set to go beyond just being a trader’s tool. According to Ripple and Kraken executives at Consensus 2025, they’re on track to become a critical part of the global financial system thanks to their fast transactions, low costs, and lack of bureaucratic hurdles.
Ripple, which launched the regulated stablecoin RLUSD, aims to transform the outdated international payments system. Meanwhile, Kraken’s Mark Greenberg called attention to fundamental flaws in traditional payment networks as the company introduced its own USDG stablecoin.
Both executives agreed the next frontier will be yield-bearing stablecoins, though regulatory hurdles currently stand in the way. EU crypto rules specifically block yield payments on USDG, while RLUSD would need to obtain securities status in the US.
Ripple and Kraken executives believe stablecoins are poised to transform the global financial system within five years. The process is accelerating with Ripple's acquisition of prime broker Hidden Road. This move is expected to fast-track stablecoin adoption as a collateral instrument in capital markets.