Since traditional financial companies are increasingly exploring Stablecoins into their operations, Goldman Sachs made a bold prediction: Stablecoin can soon reach evaluations in trillion.
This optimism comes to the wake of important organizational developments, most notably the last introduction to GeniusWhich are compatible with the governmental and federal frameworks to organize Stablecoin.
‘Stablecoin Gold Rush’
US Treasury Secretary Scott Bessin expressed his confidence in the role of Stablecoins, indicating that it can significantly enhance the market for the United States Treasury.
According to a report From The Financial Times, Bessent indicated that the government may increase the sale of short -term debts to meet the expected demand for these encrypted currencies.
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Goldman Sachs looks at this moment as the dawn of “Stablecoin Gold”. In a recent research paper, it was composed by Will Nans and his team, the bank indicated that the global market for Stablecoins is currently about 271 billion dollars.
They expect significant growth, especially for the US dollar currency (USDC), which they believe will get the market share inside and outside each of Binance platform.
The report estimates that USDC can witness a wonderful increase of $ 77 billion, the CAGR rate (CAGR) represents 40 % from 2024 to 2027.
The potential effect of encrypted currencies in dollars
The potential market for a wide Stablecoins, where Goldman Sachs highlights that Visa estimates the interesting market for payments by about 240 trillion dollars in the annual payment volume.
Consumer payments alone are about $ 40 trillion, while business payments (B2B) and transactions from one person to another (P2P) make the rest.
The unique structure of stablecoins-their request to be supported one to one in US dollar or Government bondsBoth Stablecoin directly increases the demand for bonds that support them.
Some market analysts believe that this approach will have a profound impact on the bond market, especially for brief bonds, which often result in low interest rates.
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The bank’s research paper also supports Goldman Sash’s view, indicating that the task Flow In the Stablecoin market it can reduce treasury revenues for a period of three months by 2 to 2.5 basis points within a short time frame.
However, the bank’s paper also indicates that the effects of stablecoin external flows are incapable, causing revenue to rise two to three times.
Amid great regulatory progress from the Trump administration, including the approval of the genius law for Stablecoins, the Clamp Law, and the CBDC Bill, there were increasing flows in the broader encryption market.
Important capital entered the Bitcoin and ETHEREUM boxes (ETFS), and there is a new trend for the adoption of cryptocurrencies as treasury reserves. These factors have ever increased a new increase in the total market value of $ 4.17 trillion.
As of the writing of these lines, this number decreased to $ 3.81 trillion, as the largest encrypted currencies in the market led the correction he witnessed last week.
Distinctive image from Dall-E, Chart from TradingView.com
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