Goldman Sachs Says One ‘Groundbreaking’ Technology an ‘Untapped Opportunity’ Worth Trillions: Report
Banking giant Goldman Sachs reportedly believes that stablecoins have significant growth potential in the payments sector.
Goldman Sachs analysts say in a new research paper, as seen by Fortune, that blockchain-based currencies pegged to the US dollar or other fiat currencies could grow into a market worth trillions.
“Visa sizes the addressable market for payments at ~$240 trillion in annual payment volume, with consumer payments representing ~$40 trillion of annual spending. B2B (business-to-business) payments comprise roughly ~$60 billion while P2P (peer-to-peer) payments and disbursements comprise the remainder.
As such, payments are the most obvious source of (total accessible market) expansion for stablecoins over the longer term. This opportunity is largely untapped so far, with the majority of stablecoin activity being driven by crypto trading activity and demand for dollar exposure outside of the US.”
The bank’s analysts also say that Circle, the company behind the USDC stablecoin, is poised to grow by billions of dollars.
“Stablecoins are a $271 billion global market, and we believe USDC [the stablecoin issued by Circle] benefits from market share gains on and off of partner Binance’s platform, as ongoing stablecoin legislation legitimizes the ecosystem, and the crypto ecosystem expands, also potentially catalyzed by legislation. Based on current trends and announced initiatives, we see $77 billion of growth in USDC, or a 40% CAGR (compound annual growth rate), from 2024-27E.”
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