Goldman Sachs believes the current stablecoin market is in its early stages, projecting its potential growth into the trillions of dollars.
The investment bank made this disclosure in a recent paper published by some of its analysts, as reported by Fortune. They argued that even though the stablecoin market has already gained traction, its true potential lies beyond its current use case of crypto trading and offshore demand for U.S. dollars.
Massive Opportunity Awaits Stablecoins
The report highlighted vast opportunities for stablecoins in the payments sector, citing a recent study from Visa. Notably, Visa claimed that the global payments market boasts an annual volume of $240 trillion.
While consumer spending accounts for $40 trillion of this volume, business-to-business transactions are estimated at $60 trillion. The remaining $140 trillion is tied to peer-to-peer (P2P) disbursements and payments.
Goldman Sachs’ experts believe that payments represent the biggest opportunity for stablecoins. However, stablecoins have yet to explore this opportunity, as their major use case currently revolves around crypto trading and offshore demand for the dollar.
The rationale is that if stablecoins capture even a small share of global payments, their market value could expand into the trillions of dollars.
Circle as Major Beneficiary of Stablecoin Market Growth
Meanwhile, the investment bank highlighted Circle’s USDC as the major beneficiary of the stablecoin’s current growth path. It attributed this growth to Circle’s exposure to Binance, broader crypto adoption, and clearer stablecoin regulation like the GENIUS Act, which has further enhanced the ecosystem’s legitimacy.
Notably, Goldman Sachs’ experts project that the market cap of Circle’s USDC will surge by $77 billion from 2024 to 2027, representing a 40% compound annual growth rate (CAGR).
In the meantime, the stablecoin market is valued at $288.18 billion, with Tether (USDT) leading the sector with a valuation of $167.01 billion. On the other hand, USDC ranks as the second-biggest stablecoin, thanks to its market cap of $67.62 billion.
Stablecoins to Boost Demand for US Treasuries
Elsewhere, sources told the Financial Times that U.S. Treasury Secretary Scott Bessent expects upcoming demands for stablecoins to boost the demand for U.S. treasuries.
It is common knowledge that stablecoins, particularly those pegged to the dollar, are backed 1:1 by U.S. dollar deposits or other assets, like T-Bills.
Since the GENIUS Act requires stablecoin issuers to back their tokens with U.S. dollars or other cash equivalents like treasuries, rising demand for stablecoins would also drive demand for government debt.
Interestingly, Bessent said the U.S. government is committed to selling more short-term debt to cater to the upcoming demand from stablecoin issuers.
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Source: https://thecryptobasic.com/2025/08/20/goldman-sachs-predicts-stablecoin-market-could-reach-trillions-of-dollars/?utm_source=rss&utm_medium=rss&utm_campaign=goldman-sachs-predicts-stablecoin-market-could-reach-trillions-of-dollars