The stablecoin market could reach trillions of dollars, according to a new research paper from investment banking giant Goldman Sachs released Wednesday.
“Payments are the most obvious source of (total accessible market) expansion for stablecoins over the longer term,” Goldman researchers said, according to a report from Fortune. “This opportunity is largely untapped so far, with the majority of stablecoin activity being driven by crypto trading activity and demand for dollar exposure outside of the U.S.”
Goldman also sees USDC growing $77 billion by the end of 2027, thanks partly to legislative gains. “Stablecoins are a $271 billion global market, and we believe USDC [the stablecoin issued by Circle] benefits from market share gains on and off of partner Binance’s platform, as ongoing stablecoin legislation legitimizes the ecosystem, and the crypto ecosystem expands, also potentially catalyzed by legislation.”
Worldwide, the total supply for USD-pegged stablecoins has been gradually growing year after year with Tether, which issues USDT, a token unavailable to U.S. citizens, maintaining its dominance as the number one issuer. Circle, the number two issuer, is hoping that the recently passed stablecoin legislation in the U.S. will pave the way for the company to grow adoption of USDC under a crypto-friendly Trump administration.
Mizuho Securities equities researchers said a week ago they see USDC growth at risk with more competition on the horizon. Big U.S. banks like Bank of America have signaled their intention to issue their own USD-pegged token.
Currently shut out of the U.S., Tether has made it clear it would like to tap into and service the American market. “We are well in progress of establishing our U.S. domestic strategy,” Tether CEO Paolo Ardoino said last month.
U.S. Treasury Secretary Scott Bessent has also previously said that he believes the U.S. dollar-backed stablecoin market will edge into trillions-of-dollars territory.
“I believe that stablecoin legislation backed by U.S. treasuries or T-bills will create a market that will expand U.S. dollar usage via these stablecoins all around the world,” Bessent said at the time. “I think that $2 trillion is a very reasonable number, and I could see it greatly exceeding that.”
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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