Bernstein Report: Stablecoins are growing in importance in the global financial system

BlockBeats news, 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, usually pegged to the U.S. dollar, although there are also some stablecoins pegged to other currencies and assets (such as gold).

The report pointed out that after a decline in supply in 2023, the circulation of stablecoins has now rebounded to a record $170 billion, and the 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 the digital dollar beyond the U.S.,” 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)