Bernstein: Stablecoins are becoming increasingly important to the global financial system and play an important role in cross-border payments

Stablecoins are becoming increasingly important to the global financial system, becoming the 18th largest holder of U.S. Treasuries, brokerage firm Bernstein said in a research note Thursday. After a supply decline in 2023, stablecoin issuance is now back to an all-time high of $170 billion, and monthly on-chain payments have tripled over the past 12 months, reaching $1.4 trillion in July, the report said. “Stablecoins provide international users with a channel for dollar savings, spreading digital dollars beyond the United States,” analysts led by Gautam Chhugani wrote. The report noted that these cryptocurrencies are increasingly integrated with payment and fintech companies such as PayPal (PYPL), MercadoLibre (MELI) and Grab (GRAB). Stablecoins are also increasingly used for cross-border payments. “Dollar stablecoins on crypto rails are now the cheapest cross-border payment rail,” Bernstein said. (CoinDesk)