Goldman Sachs says stablecoin demand is moving beyond crypto cycles
According to meeting minutes cited by Chaoxiang Research from a July 5 management session between Goldman Sachs and Circle, stablecoin growth is no longer being driven solely by the traditional boom-and-bust cycles of the crypto market. Instead, use cases are expanding rapidly into cross-border payments, consumer e-commerce, capital markets settlement, and AI agent payments. The minutes also said that USDC accounts for around 99% of transaction volume in the x402 agent payment protocol, underscoring its leading position in emerging machine and agent-based payment flows.
Circle argued that “digital dollarization” is accelerating across emerging markets, with USDC increasingly being used as an alternative to local currencies and fragile or unreliable banking infrastructure. On the policy front, the company said the CLARITY Act would likely act as a catalyst rather than an obstacle if passed. In Circle’s view, the bill would allow issuers to continue using revenue-sharing to incentivize distribution while encouraging reward structures tied to actual usage instead of passive holding.
Circle is repositioning itself as an internet financial platform
The meeting notes suggest Circle is moving beyond its identity as a pure stablecoin issuer and is repositioning itself as a broader internet financial platform. The company is currently building around three product lines: the Arc L1 blockchain, the CPN cross-border payment product, and Agentic Stack. Based on this transition, Goldman Sachs projects that Circle’s revenue could rise from $1.2 billion in 2026 to $2.2 billion by 2028.
On valuation, Goldman maintains a Neutral rating on Circle and sets a $96 price target. Compared with the current share price of $64.62, that implies roughly 48.6% upside. Even so, the bank also highlighted a key risk: if interest rates move lower, Circle’s interest income would face direct pressure, which could weigh on both earnings expectations and valuation.