Stablecoins are likely to become a foundational payment and settlement layer, not only in crypto markets but also in global commerce, remittances and tokenized financial systems. According to Goldman Sachs report, stablecoins could likely become a foundational payment and settlement layer, not only in crypto markets but also in global commerce, remittances and tokenized financial systems. For issuers, the economics are straightforward. A stablecoin is minted when a customer delivers dollars to an issuer, who then invests those reserves in safe assets. The issuer collects the interest. With hundreds of billions of dollars in circulation and Treasury yields above 4%, that’s a lucrative model. Circle, now a publicly traded company, disclosed that the bulk of its reserves sit in short-term Treasuries and repos, the report said. Tether, the dominant issuer with roughly $166 billion outstanding, revealed it is among the top 20 Treasury holders worldwide. Traditional networks like Visa and Mastercard already play a role in stablecoin transactions, facilitating settlement at the consumer end, the Goldman Sachs report said. Visa expects to process over $1 billion in stablecoin volume in the 12 to 18 months. The impact of stablecoins on the Treasury market is one of the most consequential but least understood dynamics. Every new stablecoin minted requires equivalent reserves, often in short-term Treasuries. That creates a new structural buyer of government debt, potentially stabilizing demand just as deficits swell. At its core, the stablecoin debate boils down to stability versus fragility. The Goldman Sachs report found that proponents see the GENIUS Act as analogous to the National Bank Act of 1863, which ended the wildcat banking era by standardizing banknotes with Treasury backing. Stablecoins, in this telling, extend the dollar’s reach into a digital, global age.