Goldman Sachs Predicts Trillion-Dollar Stablecoin Market Explosion
Wall Street giant Goldman Sachs just dropped a bombshell prediction that'll send shockwaves through both crypto and traditional finance circles.
THE NEW FRONTIER
Stablecoins aren't just settling crypto trades anymore—they're positioning to become the plumbing for global finance. Think instant cross-border payments, seamless remittances, and maybe even replacing those clunky legacy systems banks still cling to.
INSTITUTIONAL ADOPTION ACCELERATES
Major players finally get it. They see stablecoins as the bridge between traditional assets and digital efficiency—no more waiting three business days for settlements that should take three seconds.
REGULATORY REALITIES
Sure, regulators will scramble to keep up—they always do—but the train's already left the station. Trillion-dollar markets tend to write their own rules, even if it makes compliance departments break out in cold sweats.
Because nothing disrupts quite like a technology that actually works better than the system it's replacing—especially when that system still runs on paperwork and prayers.
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.
