Goldman Sachs Predicts Stablecoin Sector May Reach Trillions in Value
Goldman Sachs predicts the stablecoin sector could reach trillions in valuation, driven by recent regulatory advancements like the GENIUS Act. Key points include:
- US Treasury Secretary Scott Bessent supports stablecoins, linking them to increased sales of short-term debt.
- The global stablecoin market is valued at $271 billion, with expectations for substantial growth, particularly for Circle’s USD Coin (USDC).
- USDC may see a $77 billion increase, projected at a 40% compound annual growth rate from 2024 to 2027.
- Visa estimates the addressable market for payments at approximately $240 trillion annually.
- Consumer payments comprise about $40 trillion, while B2B and P2P transactions make up the rest.
- Stablecoins are backed one-to-one with US dollars or government bonds, increasing demand for these bonds.
- The Bank for International Settlements notes that inflows into stablecoins could reduce three-month Treasury yields by 2 to 2.5 basis points.
- Outflows from stablecoins may lead to yield increases of two to three times as much.
Recent regulatory developments have prompted capital inflows into Bitcoin and Ethereum ETFs, contributing to an all-time high crypto market capitalization of $4.17 trillion, which has since corrected to $3.81 trillion.
