Stablecoin Tsunami: Goldman Sachs Predicts Trillions to Flood Crypto Market
- Keyword Financial
- Aug 20
- 4 min read
Introduction
Goldman Sachs has released a new report predicting a massive surge in the stablecoin market, projecting that its value could reach into the trillions of dollars in the coming years. The bank highlights that while stablecoins—digital assets pegged to stable assets like the U.S. dollar—are currently valued at around $288 billion, their primary use has been limited to crypto trading and offshore demand for dollars. However, Goldman Sachs and other analysts believe the real growth opportunity lies in the global payments sector, which Visa estimates to be worth $240 trillion annually. If stablecoins capture even a small share of this market, their value could expand exponentially, transforming them into a foundational pillar of the global financial system (Fortune, TheCryptoBasic).
A key beneficiary of this projected growth is Circle’s USDC, which Goldman Sachs expects to grow by $77 billion by 2027, representing a 40% compound annual growth rate. This anticipated expansion is attributed to broader crypto adoption, Circle’s exposure to major platforms like Binance, and the introduction of clearer regulatory frameworks such as the GENIUS Act. The Act, recently announced in the U.S., provides regulatory clarity by requiring stablecoins to be fully backed by U.S. dollars or Treasuries, which not only legitimizes the ecosystem but also positions USDC to gain significant market share. Meanwhile, Tether (USDT) remains the largest stablecoin globally, but competition is expected to intensify as U.S. banks and other financial institutions consider launching their own dollar-backed tokens (BlockNews).
The report also notes that the rise of stablecoins could have a substantial impact on the demand for U.S. Treasuries, as these digital assets must be backed 1:1 by cash or equivalents like T-bills. U.S. Treasury Secretary Scott Bessent has indicated that the government is preparing to sell more short-term debt to meet the anticipated demand from stablecoin issuers. While some analysts argue that this may simply redistribute existing money rather than increase net demand for government debt, others believe it could help support the U.S. dollar’s status as the global reserve currency and expand access to the dollar economy worldwide. As regulatory clarity improves and adoption accelerates, stablecoins are poised to become a major force in both the crypto and traditional financial sectors (The Block).
