The stablecoin market could swell into the trillions of dollars, global investment bank Goldman Sachs said Wednesday in a research paper titled “Stablecoin Summer.”
In an interview with Fortune, a firm researcher added that “this opportunity is largely untapped so far, with the majority of stablecoin activity being driven by crypto trading and demand for dollar exposure outside the US.”
Goldman Pushes Bold Forecast
Goldman Sachs released a research paper highlighting stablecoins as a financial force with multi-trillion-dollar potential. The investment bank projects that the $271 billion global market could expand rapidly as regulation provides clarity and trust.
Analysts Will Nance and his team expect USDC, issued by Circle, to grow by $77 billion through 2027, reflecting a compound annual growth rate of around 40%.
Goldman’s report emphasizes payments as the most significant driver. Visa estimates annual payment volume at $240 trillion, spanning consumer, business-to-business, and peer-to-peer transactions. Stablecoins, compliant with new legislation, could tap into this vast system.
“Payments are the most obvious source of expansion for stablecoins over the longer term. This opportunity is largely untapped so far, with most activity still tied to crypto trading and demand for dollar exposure outside the US.”
Rules, Rivals, and Risks
The GENIUS Act, passed in July 2025, requires stablecoins to be backed 1:1 with US Treasuries or equivalent reserves. Treasury Secretary Scott Bessent has argued that such rules could strengthen the dollar and expand Treasury bond demand worldwide. He suggested the stablecoin market could reach $2 trillion or more.
At the same time, competition is intensifying. Tether, the issuer of USDT, maintains dominance with a global supply that is unavailable to US citizens. The company intends to enter the American market, with CEO Paolo Ardoino noting progress on a domestic strategy last month.
Circle, meanwhile, is positioning USDC as a fully compliant alternative under the new regulatory framework.
Analysts at Mizuho Securities caution that big US banks, including Bank of America, are preparing to issue their dollar-pegged tokens. UBS economist Paul Donovan questions whether stablecoins genuinely expand demand for government debt, suggesting they merely shift liquidity within existing systems.
Wall Street Joins the Game
Despite skepticism, Goldman points to institutional momentum. Asset managers such as BlackRock, Franklin Templeton, and BNY Mellon are already tokenizing money market funds, linking them to stablecoin rails for faster settlements.
Goldman’s analysis suggests that traditional card networks and remittance firms will adapt rather than resist, aiding mainstream adoption.
In early August, particularly, Goldman Sachs global markets strategist Tony Pasquariello said he continued to recommend gold, silver, and bitcoin as “stores of value” while noting the growing role of stablecoins in payments.
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