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August 23, 2025

Goldman Sachs’ Outlook on Stablecoin’s Market Disruption and Future Perspectives

"Graphic image representing the impact of Goldman Sachs, Circle's USDC, and Tether's USDT on the continuously rising global financial market, focused on the $270bn stablecoin market, highlighted in engaging orange tones contrasting with deep blue background."

Understanding The Influence Of Stablecoins On The Financial Market

The global stablecoins market, valued approximately at $270 billion, is predicted to shake up the traditional financial services industry significantly. Though the extent of this disruption remains uncertain, recent analysis from the highly esteemed investment bank Goldman Sachs indicate that concerns surrounding the potential elimination of companies offering payment and remittance services are overstated.

The Role of Federal Regulation

The introduction of the first federal regulatory system led to an awakening within the stablecoins market over the summer. Anticipation grew as discussions stirred about the potential of the stablecoins global market to magnify into trillions. Experts closely monitor whether these tokens, backed by real-world currencies, could chip away at the conventional financial services sectors.

The Purpose and Potential of Stablecoins

Predominantly, stablecoins have emerged as a tool for crypto trading and a means to access dollars outside the U.S. Many have prophesied that these digital tokens, backed by blockchain efficiency, can replace and modernize our outdated financial systems. According to a report by Goldman Sachs, however, a total revolution of the traditional financial paradigm is unlikely. In contrast, they propose that the strengths of stablecoins could be advantageous to the infrastructure layer of financial sectors, particularly for interbank payments, settlements in capital markets, as well as complex and cross-border transactions.

Stablecoins and Consumer Payments

Despite the rise in popularity of digital tokens, Goldman Sachs analysts argue that there are limited threats to conventional payment services such as the consumer card system. They propose that the underperformance of such systems presents an excellent opportunity for investment. The report further claimed that giants like Visa and Mastercard are less of competitors and are more likely to facilitate stablecoin payments, especially at a sizable scale within a consumer context.

Remittance Industry: Risks and Opportunities

Furthermore, the report suggested that risks to remittance players such as Remitly and Western Union are also overplayed. With the introduction of stablecoins into the financial ecosystem, these traditional providers of remittance services are not expected to be displaced drastically.

Stablecoins Market Competition

According to Goldman, GENIUS Act-compliant stablecoins like Circle’s USDC could see a larger market share at the expense of Tether’s offshore stablecoin, USDT. The firm predicts a potential $77 billion growth in USDC, assuming a compound annual growth rate of 40% from 2024 to 2027. Tether’s USDT, the world’s largest stablecoin with a market cap of $165 billion, could see competition from Circle’s USDC, with a market cap of $66 billion.

Stablecoins and Innovation in Crypto

Circle experienced a hike in valuation following its public offering earlier this year. However, Goldman Sachs advocates for Robinhood due to the platform’s sustained innovation in the cryptocurrency arena. This preference for Robinhood indicates Goldman’s faith in platforms that continuously innovate and adapt amidst the ever-evolving realm of cryptocurrency and blockchain technology.

Conclusion

In summary, the rise of stablecoins is causing a stir within the financial industry. However, according to Goldman Sachs research, traditional financial entities may not be wiped out, but rather they will adapt and possibly facilitate the growth of stablecoins. The potential of the stablecoin market is immense, and its full impact on the global financial industry is yet to be realized.
James Carter

Financial Analyst & Content Creator | Expert in Cryptocurrency & Forex Education

James Carter is an experienced financial analyst, crypto educator, and content creator with expertise in crypto, forex, and financial literacy. Over the past decade, he has built a multifaceted career in market analysis, community education, and content strategy. At AltSignals.io, James leads content creation for English-speaking audiences, developing articles, webinars, and guides that simplify complex market trends and trading strategies. Known for his ability to make technical finance topics accessible, he empowers both new and seasoned investors to make informed decisions in the ever-evolving world of digital finance.

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