The stablecoin market could reach a scale of trillions of USD, according to a new study published on Wednesday by investment banking giant Goldman Sachs.
Goldman researchers noted: “Payments are the clearest expansion source for the stablecoin market in the long term. This remains a largely untapped opportunity, as most current stablecoin activity still revolves primarily around cryptocurrency trading and the demand for holding USD outside of the U.S.”
Goldman Sachs predicts that USDC could increase by an additional 77 billion USD by the end of 2027, partly due to advantages from the new regulatory framework. The report states: “Stablecoins are now a global market worth 271 billion USD, and we believe that USDC – the stablecoin issued by Circle – will benefit from increasing market share both on and off the Binance platform. The gradual legal recognition of stablecoins, along with the expansion of the crypto ecosystem, could be a crucial driver for growth.”
Globally, the supply of USD-pegged stablecoins continues to grow steadily each year, with USDT still holding the leading position, even though it is not open to U.S. citizens. Circle – the issuer of USDC, which ranks second – is hopeful that the new stablecoin law passed by the U.S. Congress will pave the way for USDC to be more widely accepted, especially under a pro-crypto administration of President Donald Trump.
However, securities experts at Mizuho Securities warned last week that the growth of USDC could face risks due to increasing competition. Some major banks in the U.S., including Bank of America, have signaled plans to issue their own USD-pegged token.
Meanwhile, although it currently cannot access the U.S. market, Tether has publicly expressed its intention to expand operations there. CEO Paolo Ardoino stated last month: “We are in the process of finalizing our development strategy in the domestic U.S. market.”
U.S. Treasury Secretary Scott Bessent has also stated that the stablecoin market linked to USD has the potential to reach a scale of trillions of USD. He said: “I believe that a stablecoin law backed by U.S. Treasury bonds will create a market that expands the use of USD globally through stablecoins. A figure of 2 trillion USD is entirely feasible, and this number could be much higher.”