Goldman Sachs has projected a massive boom in the stablecoin market, describing the asset as the next major evolution in global finance.
The Wall Street bank, in its new report titled “Stablecoin Summer,” projected that digital assets pegged to the U.S. dollar will expand from about $270 billion today to trillions in the years ahead.
The forecast follows the recent passage of the GENIUS Act, landmark federal legislation establishing the first U.S. regulatory framework for payment stablecoins, and Circle’s high-profile IPO.
U.S. Regulation and Industry Momentum
Recall that the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), introduced by a bipartisan group of senators, was signed into law by President Trump on July 18, 2025. The legislation requires stablecoins to be fully backed by safe, permitted reserves such as U.S. dollars and short-term Treasuries.
Its passage marks the first time the U.S. has enacted clear federal rules for stablecoins, creating a foundation for adoption by major corporations now exploring their own digital currencies. At the same time, the House of Representatives has advanced two additional crypto bills: the CLARITY Act, aimed at broader digital asset regulation, and the Anti-CBDC Surveillance State Act, which seeks to limit the Federal Reserve’s ability to issue a central bank digital currency directly to individuals.
Stablecoins in The Global Payment Landscape
Goldman sees stablecoins’ greatest opportunity in enhancing financial infrastructure. With global payment giant Visa processing roughly $240 trillion annually, the bank notes that even limited stablecoin penetration could unlock significant value across remittances, B2B transactions, and real-time settlement.
It forecasts that USDC alone could grow by $77 billion between 2024 and 2027, a 40% annual growth rate driven by regulatory clarity and expanding adoption. In the report, former acting Comptroller of the Currency Brian Brooks, highlighted remittances as a key use case. He noted that with global transfer fees averaging 7%, stablecoins could save consumers billions by providing a cheaper cross-border alternative.
However, not all experts share Goldman’s optimism. Barry Eichengreen, a leading economist at UC Berkeley, cautioned that a proliferation of stablecoins could undermine the “singleness of money”, the idea that every dollar should trade at the same value. If multiple stablecoins trade at varying rates, merchants may face added costs and risks in verifying payments, eroding efficiency, he added.
Market Dynamics and Banking Integration
Today, the stablecoin market is valued at around $268 billion, dominated by Tether (USDT, $166 billion) and Circle’s USDC ($68 billion). Both rely on reserve-backed models, holding safe assets such as Treasuries, cash, and bank deposits.
While Goldman warns that large-scale migration from bank deposits to stablecoins could reshape the financial sector, it notes that such a shift would require stablecoins to provide clear advantages over traditional deposits, something that remains uncertain.
Notably, banks are actively integrating blockchain and stablecoin infrastructure to improve settlement speeds and client services. JPMorgan, for instance, has announced tokenized deposit tokens for institutional clients, which could emerge as a competing alternative to third-party stablecoins.
Looking Ahead
Goldman concludes that the bull case for stablecoins lies in a future where the U.S. economy becomes widely tokenized, with assets such as stocks, bonds, and real estate exchanged directly for tokenized dollars. In such a scenario, stablecoins could rival bank deposits as a core medium of exchange.
For now, stablecoins are moving beyond their speculative origins toward becoming a cornerstone of financial infrastructure. With regulatory clarity, expanding corporate interest, and growing demand for faster payments, the Wall Street bank believes the stage is set for stablecoins to play a transformative role in global finance.
