tl;dr
Goldman Sachs' research paper "Stablecoin Summer" forecasts the stablecoin market could grow from $271 billion to a multi-trillion-dollar industry, driven mainly by payments. Clearer regulations, like the GENIUS Act mandating full backing by US Treasuries, are expected to boost trust and expansion. ...
The stablecoin market could balloon into a multi-trillion-dollar industry, according to a recent Goldman Sachs research paper titled “Stablecoin Summer.” The investment bank highlighted this sector's largely untapped potential, with current activity predominantly driven by crypto trading and demand for dollar exposure outside the US.
Goldman Sachs projects the global stablecoin market, currently valued at $271 billion, to expand rapidly under clearer regulations and growing trust. The bank predicts that Circle's USDC stablecoin alone could grow by $77 billion through 2027, representing a compound annual growth rate near 40%. The primary catalyst for this growth is expected to be payments, a sector where annual transaction volumes reach an estimated $240 trillion globally, including consumer, business-to-business, and peer-to-peer payments.
The passing of the GENIUS Act in July 2025 mandates that stablecoins be fully backed by US Treasuries or equivalent reserves, a move Treasury Secretary Scott Bessent believes will strengthen the dollar and boost Treasury bond demand worldwide. Despite rising competition, with Tether looking to enter the US market and major banks such as Bank of America preparing to issue their own dollar-pegged tokens, Circle aims to position USDC as a fully compliant option under the new rules.
Some economists remain skeptical about whether stablecoins truly increase demand for government debt or merely reallocate liquidity within existing financial systems. Nevertheless, institutional momentum is building, with asset managers like BlackRock and Franklin Templeton tokenizing money market funds linked to stablecoin infrastructure to facilitate faster settlements. Goldman Sachs also anticipates that traditional card networks and remittance companies will adapt to support mainstream stablecoin adoption.
In August, Goldman Sachs' strategist Tony Pasquariello continued endorsing gold, silver, and bitcoin as stores of value, while simultaneously acknowledging the expanding role stablecoins are playing in the payments landscape. This evolving environment suggests stablecoins may soon transition from niche crypto tools to essential components in the broader financial ecosystem.