Goldman Sachs says the market for U.S. dollar-backed cryptocurrencies, known as stablecoins, could grow from about $271 billion today to several trillion dollars in the future, once clear regulations make it easier for people and businesses to use them for payments.

Analyst Will Nance compared the potential of stablecoins to Visa’s estimated $240 trillion yearly payment volume. Goldman expects Circle’s USDC alone could grow by $77 billion between 2024 and 2027, at a 40% yearly growth rate.

U.S. policymakers also seem supportive. Treasury Secretary Scott Bessent said stablecoins could strengthen the dollar’s role as the world’s main currency and increase demand for short-term U.S. government bonds (which back stablecoins). A new proposal called the GENIUS Act would create one clear set of rules for stablecoin issuers across states and the federal government.

The effect on the bond market is still debated. A study by the Bank for International Settlements shows that big inflows into stablecoins can lower 3-month Treasury yields by up to 2.5 basis points, while big outflows can push them higher. UBS economist Paul Donovan argues that stablecoins may just move demand around instead of creating new demand for U.S. debt.

Crypto industry researchers are also raising their forecasts. KeyrockTrading predicts stablecoin payments could pass $1 trillion a year by 2030, supporting Goldman’s view that programmable, dollar-backed tokens could become a major global payment system.