Goldman Sachs Warns Stablecoins Could Spark a Trillion-Dollar Rush

Goldman Sachs is telling clients that the world may be on the verge of a “stablecoin gold rush.” After years of being dismissed as a niche corner of crypto, dollar-backed tokens are moving toward mainstream finance, with potential to scale into the trillions.

The bank points to a convergence of regulatory clarity, rising institutional adoption, and demand for faster payments as the drivers behind what could be one of the most significant shifts in financial infrastructure since the rise of online banking.

From Shadow Assets to Regulated Finance

Stablecoins were once viewed primarily as trading tools for crypto exchanges, often criticized for opaque reserves and offshore operations. That reputation has shifted. With Washington moving toward clearer oversight, issuers are positioning themselves as credible alternatives for payments, settlements, and liquidity management.

Goldman notes that the next wave of growth will not come from speculative trading, but from integration into the broader financial system. In this framework, stablecoins become less about crypto volatility and more about functioning as regulated, dollar-linked digital cash.

USDC and Tether in the Spotlight

Tether’s USDT remains the largest stablecoin globally, with over $110 billion in circulation. But Goldman highlights Circle’s USDC as the token best positioned to benefit from U.S. regulatory frameworks. With its reserves held largely in Treasuries and cash, USDC is likely to appeal to institutions that need compliance as much as liquidity.

The competition between USDT and USDC could define the next stage of the market, with Goldman suggesting that the balance may tilt toward tokens that meet American regulatory standards.

Payments Networks and Financial Institutions Take Notice

Far from being sidelined, traditional payment companies like Visa and Mastercard are increasingly experimenting with stablecoin settlement. Goldman argues that partnerships between stablecoin issuers and established financial networks will accelerate adoption, allowing stablecoins to ride on existing rails rather than replace them.

Banks are also showing more interest. As reserve-backed tokens become more mainstream, financial institutions may use them for faster interbank transfers, cross-border settlement, and even collateral in lending markets.

What a Stablecoin Boom Would Mean for Markets

A trillion-dollar stablecoin market would have implications well beyond crypto. Treasury demand could rise as issuers expand their reserves, influencing short-term yields. Payment providers might see new revenue streams emerge from transaction integration. And competition between issuers could drive consolidation, reshaping the digital asset landscape.

Goldman stresses that stablecoins will not move markets overnight, but the structural shift could be profound. What began as a crypto convenience tool is now positioned as a core element of global finance.

Tips for Traders

• Follow adoption trends in Circle’s USDC—its regulatory alignment may draw institutional money.

• Watch how Tether responds to increased U.S. scrutiny, as its dominance may face challenges.

• Track Treasury markets, since reserve strategies could affect short-term yields.

• Pay attention to partnerships between stablecoin issuers and payment networks.

• Be mindful of regulatory announcements—policy clarity is the biggest catalyst in this sector.