Catenaa, Thursday, August 21, 2025- Goldman Sachs expects the stablecoin market to expand into the trillions of dollars in the coming years, citing payments and global demand for US dollar exposure as primary drivers.
In a research paper released Wednesday, the investment bank projected Circle’s USDC stablecoin could grow by $77 billion by the end of 2027, supported by legislative gains and wider adoption.
“Payments are the most obvious source of expansion,” Goldman said, noting that most stablecoin activity today remains tied to trading and hedging demand.
The global stablecoin market currently stands at $271 billion, led by Tether’s USDT.
While Tether dominates outside the US, Circle, the No. 2 issuer, is banking on recently passed US legislation and support from the Trump administration to boost adoption of USDC.
Treasury Secretary Scott Bessent has echoed the bullish outlook, saying he expects US dollar-backed stablecoins to surpass $2 trillion in circulation, fueled by assets tied to Treasuries and short-term government debt.
Mizuho Securities analysts, however, warned that USDC could face headwinds as large US banks, including Bank of America, signal plans to issue their own dollar-backed tokens.
Meanwhile, Tether CEO Paolo Ardoino has said the firm is preparing a US strategy to tap into domestic markets.
