Will Nance of Goldman Sachs sees stablecoins having the potential to tap into the $240 trillion payment market, with USDC expected to grow at a CAGR of 40%.
Goldman Sachs has published a research report on August 20 evaluating stablecoins as a strong driving force in global finance, propelled by clarity in the regulatory framework and superior efficiency. This leading financial group sees the potential of trillions of USD from the stablecoin crypto asset market.
The report prepared by Goldman’s analysis team, including Will Nance, and published by Fortune, indicates that the total market capitalization of stablecoins currently stands at about $271 billion. This market is led by major issuers such as Tether with USDT and Circle with USDC.
Although stablecoins are currently mainly used in crypto asset transactions, Goldman Sachs sees a much broader outlook. Analysts cite Visa's estimate of the annual payment market size of $240 trillion, including consumer spending, business transactions, and peer-to-peer transfers.
Strong growth and legal impact
Goldman forecasts that compliant stablecoins like USDC will expand rapidly at a 40% annual growth rate, adding about $77 billion in supply by 2027. This expansion is expected to reduce the market share of less regulated competitors due to the adoption of new federal oversight.
The U.S. GENIUS Act, effective from July 2025, plays a crucial role in shaping the market. This law requires stablecoins to be backed on a 1:1 basis by U.S. Treasuries or equivalent cash reserves, creating a transparent and reliable legal environment.
Goldman remarks that stablecoins will reshape functions such as interbank payments; however, the bank downplays the risks to the card network and remittance companies. Instead, these traditional institutions are expected to play a supportive role in the adoption of stablecoins.
Leading institutions such as BlackRock, Franklin Templeton, and BNY Mellon have begun tokenizing assets like money market funds, connecting them with stablecoin rails to facilitate faster payments. This move indicates an increasing acceptance of stablecoins within the traditional financial system.
The research by Nance and the team was published shortly after strategist Tony Pasquariello reaffirmed the preference for gold, silver, and bitcoin as store of value assets. Goldman’s outlook reflects a growing view among institutions that stablecoins could unlock trillions of dollars in potential, alongside the trend of investing in traditional alternative assets.
