On September 19, investment firm Bernstein released a report stating that stablecoins are playing an increasingly important role in the global financial system.

Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to the US dollar, although there are also stablecoins pegged to other currencies and assets like gold.

The report noted that after a dip in supply during 2023, the circulating supply of stablecoins has now climbed back to a record $170 billion, with monthly on-chain payments tripling over the past 12 months to $1.4 trillion in July.

"Stablecoins provide international users with access to dollar savings, pushing digital dollars beyond the US borders," wrote the team led by analyst Gautam Chhugani.

The report also noted that these cryptocurrencies are becoming more deeply integrated with payments and fintech companies like PayPal (PYPL), MercadoLibre (MELI) and Grab (GRAB). (CoinDesk)