Bernstein, an investment research firm, released a report on Thursday stating that stablecoins are playing an increasingly important role in the global financial system, becoming the 18th largest holder of U.S. Treasuries. The report notes that after a decline in supply in 2023, stablecoin issuance has now returned to its all-time high of $170 billion. On-chain monthly payment volume has tripled in the past 12 months, reaching $1.4 trillion in July.

Analysts led by Gautam Chhugani wrote, "Stablecoins provide international users with a channel for dollar savings, spreading digital dollars beyond the U.S." The report points out that these cryptocurrencies are being increasingly integrated with payment and fintech companies such as PayPal (PYPL), MercadoLibre (MELI), and Grab (GRAB). Stablecoins are also being used more frequently for cross-border payments. Bernstein states, "Dollar stablecoins on the crypto rails are now the cheapest cross-border payment rails." (CoinDesk)