Ripple Executive Highlights Stablecoins' Significant Impact on Global Payments

According to Jack McDonald, Ripple's senior vice president of stablecoins, stablecoins are transitioning from being a tool for cryptocurrency traders to forming the foundation of global finance, representing a significant innovation in global payments. McDonald made this statement at Consensus 2025 in Toronto, where he was joined by Mark Greenberg, Kraken's head of consumer, on a panel discussion. McDonald emphasized that the rise of stablecoins signifies an evolution in global money movement, providing an alternative, frictionless, and cost-effective method for making U.S. dollar payments. Ripple's introduction of RLUSD, a fully backed and regulated stablecoin, is part of a broader effort to replace outdated cross-border payment systems. Greenberg highlighted the inefficiencies of the current financial system, stating that stablecoins are the solution and that we are currently witnessing a tipping point. Kraken is a founding member of the Global Dollar Network, a consortium that issues the USDG stablecoin. Both executives agree that yield-bearing stablecoins will be the next major development, although regulatory frameworks are still evolving. They noted that regulators have different stances across jurisdictions, with the European Union's MiCA rules prohibiting USDG from paying yield. McDonald expressed Ripple's desire to offer yield on its stablecoin but would need to register RLUSD as a security in the U.S. Over the next five years, both executives foresee stablecoins revolutionizing traditional finance as they become more widespread. McDonald pointed to Ripple's acquisition of Hidden Road as a key step toward utilizing stablecoins as collateral and cross-margin in capital markets. Greenberg envisions a future where stablecoins are so deeply embedded in the financial system that they become almost invisible, much like SWIFT or wire transfers.