As U.S. regulations for stablecoins inch closer, Ripple may be positioning itself to become one of the world’s largest holders of U.S. Treasuries.
This transformation hinges on two major factors: Ripple’s own stablecoin ambitions and its reported bid to acquire Circle, the issuer of USDC.
Ripple could become one of the largest holders of U.S. Treasuries. 🇺🇸
Ripple owns major stablecoin RLUSD and if ends up owning USDC, it would need to back them with large amounts of U.S. government debt — just like Tether and Circle.
This shift could mark a turning point:… pic.twitter.com/xcotm4N5fv
— TheCryptoBasic (@thecryptobasic) May 20, 2025
Ripple’s Stablecoin Move
Ripple entered the stablecoin market in late 2024 with the introduction of RLUSD, a U.S. dollar-pegged digital asset. RLUSD is supported by U.S. government treasuries, USD deposits, and cash equivalents. Leading stablecoin issuers like Tether and Circle also follow this model.
As of today, RLUSD’s market cap has expanded to over $321 million, placing it among the top 15 stablecoins just six months after launch.
Meanwhile, Ripple’s ambitions in the stablecoin market do not stop at RLUSD. According to Fortune, the company made a $4 to $5 billion offer to acquire Circle, the firm behind the second-largest stablecoin by market cap.
Although the bid was rejected, the discussions suggest that Ripple is seriously considering expanding its stablecoin footprint. This could dramatically increase its need for U.S. government debt as collateral.
Notably, Circle filed for an IPO in April, targeting a $5 billion valuation. However, ongoing acquisition talks with both Coinbase and Ripple suggest a potential change of course.
Coinbase currently has revenue-sharing and governance agreements with Circle around USDC, and many viewed it as the more natural acquirer. Still, Ripple’s deep war chest, including over $13 billion worth of XRP and access to another $86 billion in escrow, makes it a formidable suitor.
State of Stablecoin Regulation
Circle, Coinbase, and Ripple are all navigating a shifting regulatory landscape. Particularly, the GENIUS Act aims to establish a clear framework for issuing stablecoins in the United States.
Notably, the U.S. Senate advanced the GENIUS Act in a 66–32 procedural vote, with 16 Democratic senators crossing the aisle to support the bill. The legislation now heads to the Senate floor for debate and possible amendments, with a final vote expected soon.
Congressional Prediction for Stablecoin Issuers as Treasury Giants
In an interview on Monday with CNBC, Senator Bill Hagerty stated he expects stablecoin issuers to become the largest holders of U.S. Treasuries in the world by 2030, citing data from Citibank.
Stablecoin issuers will be the largest holders of U.S. treasuries in the world. pic.twitter.com/Z8uoYdhmcs
— Senator Bill Hagerty (@SenatorHagerty) May 19, 2025
Indeed, Treasuries are central to stablecoin reserves due to their safety and liquidity, similar to money market funds.
Major issuers like Tether and Circle currently hold about $150 billion in U.S. government debt, a small share of the $28 trillion market. Standard Chartered predicts the stablecoin market could reach $2 trillion by 2028.
In perspective, this could add as much as $1 trillion in demand for Treasury bills. Citi suggests that stablecoin issuers could eventually surpass any single foreign nation in terms of Treasury holdings.
Ripple’s Path to Becoming a Treasury Giant
Tether, which already holds approximately $120 billion, could become the largest holder if it complies with new regulatory requirements.
Meanwhile, Ripple, if it successfully grows RLUSD and acquires USDC, would hold tens or even hundreds of billions of dollars in U.S. government debt to meet reserve standards and maintain user trust.
As global demand for digital dollars expands, so will the need to park assets in the safest, most liquid financial instruments available.
