Goldman Sachs Projects Stablecoin Market to Surge Beyond $2 Trillion

- Goldman Sachs forecasts multi-trillion-dollar stablecoin market. - U.S. legislation to fuel adoption and accelerate market growth. On August 20, 2025, Goldman Sachs reported in a market research paper that stablecoins are a key growth area, highlighting the industry's potential to reach multi-trillion-dollar valuations. The investment bank emphasized that payments are the most promising yet underutilized application for stablecoins, which are currently fueled primarily by cryptocurrency trading and global demand for U.S. dollar exposure. The report underscored the role of recent U.S. legislation in legitimizing the stablecoin ecosystem, adding that clear regulatory frameworks could catalyze adoption, particularly among institutional players. As a result, Goldman Sachs forecasted that Circle’s USD-pegged stablecoin, USDC, could achieve a market cap of $77 billion by 2027, driven by favorable policies and the expanding cryptocurrency landscape. Currently, the global stablecoin market is worth around $271 billion. Fierce competition is brewing within the stablecoin industry, as major U.S. banks like Bank of America have announced intentions to launch their own USD-backed tokens. Meanwhile, Tether, the issuer of the world’s largest stablecoin USDT, is actively pursuing a U.S. market strategy, with CEO Paolo Ardoino confirming the company is progressing steadily with its plans to enter the domestic market. Industry leaders have offered mixed reactions to the stablecoin growth narrative. U.S. Treasury Secretary Scott Bessent called a $2 trillion valuation for the U.S. dollar-backed stablecoin sector a "reasonable" projection. He added that tailored regulations for stablecoins backed by U.S. treasuries could further boost adoption and, in turn, amplify the global use of the U.S. dollar. On the other hand, JPMorgan urged caution, suggesting that infrastructure gaps might limit stablecoin market growth to a two to three-fold increase in the short term. Mizuho Securities echoed these concerns, warning of potential hurdles for Circle’s USDC, including declining adoption rates and intensifying competition. According to the latest market data on August 20, as of 15:15 UTC, Tether’s USDT was trading at $1, reflecting a 0.008% decrease over the past 24 hours. At the same time, Circle’s USDC was also trading at $1, marking a 0.01% uptick in 24 hours.