Goldman Sachs released a research report titled "Stablecoin Summer" on Wednesday, stating that the stablecoin market could grow to trillions of dollars in size.
In an interview with Fortune, a researcher said, "This opportunity is still largely untapped, and most stablecoin activity is driven by cryptocurrency trading and demand for dollar exposure outside the United States."
Goldman Pushes Bold Predictions
Goldman Sachs released a research report highlighting stablecoins as a financial force with trillions of dollars in potential. The investment bank predicts that the $271 billion global market can rapidly expand as regulations provide clarity and trust.
Analysts Will Nance and his team expect USDC, issued by Circle, to increase by $77 billion by 2027, with an annual growth rate of around 40%.
Goldman's report emphasizes payments as the most critical driver. Visa estimates annual payment volume at $240 trillion, including consumer, business-to-business, and peer-to-peer transactions. Stablecoins complying with new laws can access this massive system.
"Payments are the most obvious source of expansion for stablecoins in the long term. This opportunity is still largely untapped, and most activity remains tied to cryptocurrency trading and dollar exposure demand outside the United States."
Rules, Competitors... Risks
The GENIUS Act passed in July 2025 requires stablecoins to be backed 1:1 by US Treasury or equivalent reserves. Treasury Secretary Scott Bessent argues that these rules can strengthen the dollar and expand Treasury demand globally. He suggested the stablecoin market could reach over $2 trillion.
Meanwhile, competition is intensifying. Tether, the issuer of USDT, maintains global supply not available to US citizens. The company plans to enter the US market, with CEO Paolo Ardoino mentioning progress on domestic strategy last month.
Meanwhile, Circle is positioning itself as a fully compliant alternative for USDC under the new regulatory framework.
Analysts at Mizuho Securities warn that major US banks, including Bank of America, are preparing to issue dollar-pegged tokens. UBS economist Paul Donovan questions whether stablecoins actually expand government debt demand, suggesting they merely move liquidity within the existing system.
Wall Street Joins the Game
Despite skepticism, Goldman points to institutional momentum. Asset managers like BlackRock, Franklin Templeton, and BNY Mellon are already tokenizing money market funds and connecting them to stablecoin rails to support faster settlements.
Goldman's analysis suggests that traditional card networks and remittance companies will adapt rather than resist, helping mainstream adoption.
Specifically in early August, Goldman Sachs Global Markets Strategist Tony Pasquariello stated that he still recommends gold, silver, and Bitcoin as "stores of value," while noting the growing role of stablecoins in payments.
