Mars Finance reports that brokerage firm Bernstein stated in a research report on Thursday that stablecoins are increasingly important to the global financial system, becoming the 18th largest holder of US Treasury bonds.

The report said that stablecoin issuance has now returned to a record high of $170 billion, after supply declined in 2023. On-chain monthly payment volume has tripled in the past 12 months, reaching $1.4 trillion in July.

The report noted that these cryptocurrencies are being increasingly integrated with payment and fintech companies, such as PayPal (PYPL), MercadoLibre (MELI), and Grab (GRAB). Stablecoins are also increasingly being used for cross-border payments.

Bernstein said: "Dollar-pegged stablecoins on the crypto track are now the cheapest cross-border payment track."