Goldman Sachs' major prediction: stablecoins will see a trillion-dollar influx! USDC's growth leads the way, the GENIUS Act ignites a new era of demand for U.S. Treasury bonds.

Goldman Sachs' latest report predicts that trillions of dollars will soon flow into the stablecoin market, signaling a structural shift in the global financial system. This article provides an in-depth analysis of the logic behind Goldman Sachs' expectation of a rise of up to $77 billion in USDC, how the GENIUS Act paves the way for compliant stablecoins, and how this competition landscape for stablecoins led by USDT and USDC will reshape Crypto Assets investment strategies and the outlook for US Treasury demand.

【Goldman Sachs Report Reveals: The Trillion-Dollar Growth Channel for Stablecoin Market is Open】 Goldman Sachs released a report this week predicting that trillions of dollars could soon flow into stablecoins, a key segment of the Crypto Assets space. This prediction is based on the astonishing $7 trillion transaction volume processed by stablecoins in the previous quarter, indicating that the global finance system is facing a structural upheaval. This assessment aligns with U.S. Treasury Secretary Scott Bessen's communication to Wall Street, highlighting that stablecoins will play an increasingly important role in the demand for U.S. government bonds. The market has already reacted, with the total valuation of stablecoins swelling to $271 billion in August. In a new research report released on Wednesday, Goldman Sachs pointed out that the payments space is the most visible growth path for stablecoins, although the vast majority of stablecoin activity is still concentrated on Crypto Assets trading and dollar exposure demand outside the U.S.

【USDC vs. USDT: The Battle for Stablecoin Supremacy and Investment Opportunities in the Era of Compliance】

(Source: Goldman Sachs Report) Goldman Sachs researchers pointed out that the global stablecoin market is currently dominated by Tether's USDT, which continues to hold the position of the largest issuer. The second-largest issuer, Circle, bets on recent US legislation and a potentially crypto-friendly Trump administration to provide a regulatory environment conducive to expanding its USDC adoption. The report predicts that Circle's USDC issuance may grow by $77 billion between 2024 and 2027, with a compound annual growth rate of about 40%. Goldman Sachs describes this expansion as the beginning of a "stablecoin gold rush," driven by legislative clarity and the broader integration of digital assets into the financial system. Goldman Sachs also emphasizes that while stablecoins can reshape certain aspects of finance, they are not expected to replace mature consumer card networks like Visa and MasterCard. These companies are likely to remain at the core of payment infrastructure, handling areas such as dispute resolution, rewards, and transaction distribution.

【GENIUS Act Becomes Catalyst: Trillion-Dollar Treasury Demand Engine Activated】 Treasury Secretary Scott Bentsen emphasized that stablecoins are not just a niche crypto product. According to the Financial Times, he has privately informed Wall Street that digital tokens pegged 1:1 to the USD and US Treasury bonds could become a major new source of demand for government bonds. In public, he stated that stablecoins will "reinforce the dollar's status as the global reserve currency, expand access to the dollar economy for billions of people around the world, and lead to a surge in demand for US Treasury bonds."

The optimistic sentiment of Besant stems from the signing of the GENIUS Act into law in July, which provides a clear federal framework for stablecoins. The White House stated that the Act "coordinates state and federal stablecoin frameworks, ensuring fair and consistent regulation nationwide." According to the Act, issuers must hold highly liquid, ultra-safe assets (such as cash and short-term government bonds) as a 1:1 reserve. Compliant stablecoins could now become a multi-trillion-dollar engine for U.S. debt demand.

【Compliance advantages appear: How USDC seizes new opportunities in the stablecoin market】 Goldman Sachs analysts believe that the GENIUS Act could change the balance of power in the stablecoin market, with Circle's USDC expected to capture market share from Tether's USDT, which currently dominates. This landmark legislation establishes standards that align with Circle's operating model, but has long raised questions about Tether's reserve transparency. Tether (USDT), with a market capitalization of $165 billion compared to USDC's $66 billion, is facing pressure for adjustment. The company has stated that it is working to comply with the GENIUS Act, but Goldman Sachs points out that the clarity in regulation is more advantageous for U.S. issuers with audited reserves, which could give Circle a long-term advantage.

For Circle, the clarification of regulations comes at just the right time. The company's IPO earlier this year boosted its visibility, and partnerships with companies like Robinhood showcase the potential for stablecoins to be embedded in broader payment and financial systems. In contrast, Tether must prove that it can adapt to stricter standards without losing its global user base, especially in its dominant emerging markets.

Conclusion: Goldman Sachs' report and the legislative progress in the United States clearly point to a future: stablecoins have transitioned from trading tools in the Crypto Assets realm to being a key bridge connecting traditional finance and the digital asset world, and may become long-term, stable buyers of US Treasuries. The implementation of the GENIUS Act brings unprecedented Compliance certainty to the market, which will greatly facilitate the entry of institutional funds. For Crypto Assets investors, focusing on the growth potential of Compliance leaders like USDC, as well as gaining insight into the yield changes of stablecoins and their correlation with the Treasury market, will become important investment strategies in the future. The competition led by USDT and USDC not only concerns the future of stablecoins themselves but will also profoundly impact the financial landscape from Wall Street to Washington.