Goldman Sachs sees stablecoins as new force in global financial system
Goldman Sachs, one of the world’s largest investment banks, has released new research portraying stablecoins as instruments capable of reshaping global markets. The bank projects that the current $271 billion market could grow significantly, supported by tighter regulation and rising institutional confidence.
The report highlights the passage of the U.S. GENIUS Act, the first comprehensive federal framework for stablecoin issuance. The law requires full reserve backing, monthly disclosures, and oversight by banking regulators. According to Brian Brooks, former Acting Comptroller of the Currency, the GENIUS Act creates a “sense of safety” that could trigger a true “stablecoin gold rush.”
Corporate interest and stability risks
USD Coin (USDC) issuer Circle recently went public, while giants such as Walmart and Amazon are reportedly exploring their own stablecoin launches. These moves underscore the increasing commercial appeal of tokenized assets and innovative payment solutions.
However, the outlook is not without controversy. UC Berkeley professor Barry Eichengreen warns that rapid growth in privately issued digital currencies could echo the problems of the 19th-century Free Banking Era, when competing banknotes undermined trust in the financial system. He argues that even with reserve requirements, the proliferation of stablecoins could fragment the “singleness of money” and introduce new systemic risks.
Impact on markets and the banking system
Goldman’s analysts assessed the implications across several areas. For stablecoin issuers, opportunities are expected to expand as tokenization of real-world assets—from equities to mortgages—accelerates. For traditional payment networks, analysts believe disruption risks are overstated, noting that many companies already play a role in processing stablecoin transactions.
The report also evaluates potential effects on the U.S. Treasury market. Brooks predicts growing demand as stablecoins must be backed by government debt. Goldman strategists, however, caution that the overall impact will depend on the pace of adoption and capital inflows. As for bank deposits, outflows are expected to remain limited in the near term, given the lack of interest payments on stablecoins and the protection of FDIC insurance.
In conclusion, the report notes that stablecoins have moved beyond being a niche crypto product and are emerging as a new pillar of the global financial system, one that could soon rival traditional payment and funding mechanisms.
Read also: Crypto lobby defends GENIUS Act as bankers seek tighter yield restrictions
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