On September 19, brokerage firm Bernstein released a report stating that stablecoins are becoming increasingly important in the global financial system.
A stablecoin is a cryptocurrency designed to maintain a stable value, typically pegged to the U.S. dollar, although there are also some stablecoins pegged to other currencies and assets such as gold.
The report noted that after a supply decline in 2023, stablecoin circulation has now rebounded to a record $170 billion, and monthly payment volume on the chain has tripled in the past 12 months to $1.4 trillion in July.
“Stablecoins provide international users with access to U.S. dollar savings, expanding the reach of digital dollars beyond the United States,” the team, led by analyst Gautam Chhugani, wrote.
The report also noted that these cryptocurrencies are achieving deeper integration with payment and fintech companies such as PayPal (PYPL), MercadoLibre (MELI) and Grab (GRAB). (CoinDesk)
