Bernstein Report Highlights Growing Importance of Stablecoins in Global Finance

The brokerage firm Bernstein has released a report emphasizing the increasing significance of stablecoins within the global financial system. Stablecoins are cryptocurrencies designed to maintain a stable value, often pegged to the US dollar, though some are also tied to other currencies and assets like gold.

The report indicates that after a decline in supply during 2023, stablecoin circulation has rebounded to a record high of $170 billion. Additionally, monthly on-chain payments have tripled over the past 12 months, reaching $1.4 trillion in July. The team led by analyst Gautam Chhugani wrote, "Stablecoins provide access to dollar savings for international users, effectively extending the reach of digital dollars beyond the US."

The report further notes that these cryptocurrencies are increasingly integrating with payment and fintech companies such as PayPal (PYPL), MercadoLibre (MELI), and Grab (GRAB).