A former executive at the hedge fund founded by billionaire Ray Dalio says she’s closely monitoring the sentiment of Corporate America’s top executives as earnings season picks up speed.

In a new CNBC Television interview, ex-Bridgewater chief investment officer Rebecca Patterson says this earnings season will offer key insights into the trajectory of the US economy in the months ahead.

Patterson says that while strong bank earnings reflect the health and sentiment of US consumers, she notes that it’s now time to keep a close eye on the outlook of America’s C-suite executives.

“I’m watching more than anything else is the qualitative assessment by the executives of where we go from here. I don’t really care about the backward-looking.

I want to know: are input costs going up yet? Are they investing more or less? 

Because their sentiment will drive corporate activity over the next six months, and that’s going to be a big factor for the broader macro view.”

Patterson also believes that America will soon feel the brunt of Trump’s tariffs, as the forces that have helped to keep inflation in check begin to fade.

“I think going forward, the inventories that had helped us have been wound down. Trans-shipments helped, and that’s something the government is going to get tough on. So I do think there’s a greater chance that we’re going to see more of the tariff impact come through on prices. 

And then it’s a question: how much does a consumer bear? How much do corporates absorb? 

We don’t know what that exact mix would be, but directionally, I think the risk is that we have higher inflation in the second half of this year. That means that two Fed cuts by January are at risk.”

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Ripple CEO Brad Garlinghouse says there’s a widely-held belief that the stablecoin market could grow almost ten times over the next few years. 

The stablecoin industry is currently around $250 billion in market capitalization, and “many people think it will reach $1 to $2 trillion in a handful of years,” said Garlinghouse on CNBC’s “Squawk Box” on Wednesday.

He added that the growth behind it has been “profound,” saying that Ripple joined the market late partly because the firm was using stablecoins in its payment flows for its institutional customers. 

“We can participate in this [stablecoin] market given our institutional background and regulatory compliance,” he said, confirming that the growth ahead will serve the firm well.

The comments came as Garlinghouse announced that BNY Mellon would be the firm’s stablecoin custodian for its Ripple USD dollar-pegged asset.

Ripple launched its own enterprise-focused stablecoin, RLUSD, in late 2024. Since then, its market capitalization has grown to $500 million, a milestone it reached on Wednesday.  

Huge growth for stablecoins

Apollo Capital’s chief investment officer, Henrik Andersson, agreed with Garlinghouse’s prediction, telling Cointelegraph on Thursday, “The $1-2 trillion market cap for stablecoins is in line with our prediction.” 

“We are seeing fintechs, banks, social networks, and large retailers all launch their own stablecoins.” 

Andersson cited Tether’s profitability as an example of how lucrative the business can be. 

“The next catalyst for stablecoin adoption will be the GENIUS Act in the US, which will make stablecoins legal tender,” he added.

The stablecoin legislation passed a Senate vote in June and is likely to be made into law this month. 

“The crypto-friendly SEC, along with the GENIUS Act, can align the crypto industry to rapidly expand, with the potential for the stablecoin market to reach $1-2 trillion in market cap in a few years,” Nick Ruck, director at LVRG Research, told Cointelegraph. 

Ripple banking license 

Ripple, which primarily serves institutional clients, is aiming to become fully compliant in the US so that it can operate under the same framework as banks and financial institutions. 

Earlier this month, Ripple applied for a banking license with the US Office of the Comptroller of the Currency (OCC).

The firm has also applied for a Federal Reserve Master Account, said Garlinghouse, adding, “We think that the key thing for crypto and decentralized finance […] is building bridges between traditional finance and DeFi.” 

XRP hits seven-week high

This week, Ripple also announced that its stablecoin has received a significant boost by integrating with Transak, a major cryptocurrency payments platform.

The firm’s cross-border payments token XRP (XRP) has rallied 7% since Monday and was trading at $2.42 at the time of writing, its highest price for seven weeks. 

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