The stablecoin market has the potential to grow into the trillions of dollars, as stated by global investment bank Goldman Sachs in a research paper titled “Stablecoin Summer.”
In an interview with Fortune, a researcher from the firm noted, “this opportunity is considerably untapped at present, with most stablecoin activity driven by crypto trading and the demand for dollar exposure outside the US.”
Goldman Pushes Bold Forecast
Goldman Sachs released a research paper identifying stablecoins as a financial force with potential worth trillions. The investment bank anticipates that the current $271 billion global market could quickly grow as regulations provide greater clarity and trust.
Analysts Will Nance and his team predict that USDC, issued by Circle, will increase by $77 billion by 2027, indicating a compound annual growth rate of around 40%.
Goldman’s report highlights payments as the primary driver of growth. Visa estimates the annual payment volume at $240 trillion, encompassing consumer, business-to-business, and peer-to-peer transactions. Stablecoins, when compliant with new regulations, could access this expansive system.
“Payments represent the most evident source of growth for stablecoins in the long run. This opportunity remains largely untapped, with the majority of activities still connected to crypto trading and the quest for dollar exposure outside the US.”
Rules, Rivals, and Risks
The GENIUS Act, which was passed in July 2025, mandates that stablecoins be backed 1:1 by US Treasuries or equivalent reserves. Treasury Secretary Scott Bessent has argued that these regulations could enhance the dollar’s position and increase global demand for Treasury bonds. He suggested that the stablecoin market might reach $2 trillion or beyond.
At the same time, competition is heating up. Tether, the issuer of USDT, holds a dominant position with a global supply not accessible to US citizens. The company plans to enter the American market, with CEO Paolo Ardoino indicating last month that progress is being made on a domestic strategy.
Circle, on its end, is positioning USDC as a fully compliant alternative under the new regulatory landscape.
Analysts at Mizuho Securities warn that major US banks, such as Bank of America, are gearing up to issue their dollar-pegged tokens. UBS economist Paul Donovan questions whether stablecoins genuinely drive demand for government debt, arguing that they may only redistribute liquidity within existing systems.
Wall Street Joins the Game
Despite some skepticism, Goldman points to an increasing institutional interest. Asset managers like BlackRock, Franklin Templeton, and BNY Mellon are already tokenizing money market funds, linking them with stablecoin networks for quicker settlements.
Goldman’s analysis indicates that traditional card networks and remittance companies will adapt instead of resisting change, thus facilitating mainstream acceptance.
Earlier in August, Goldman Sachs global markets strategist Tony Pasquariello stated that he continues to advocate for gold, silver, and bitcoin as “stores of value,” while acknowledging the increasing significance of stablecoins in transactions.
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