Stablecoins are gaining increasing importance within the global financial system, according to a report by broker Bernstein. The report highlights that stablecoins, which are cryptocurrencies designed to maintain a steady value usually pegged to the US dollar, now hold the 18th-largest amount of US Treasuries. The circulation of stablecoins has reached an all-time high of $170 billion, with monthly on-chain payments volume tripling to $1.4 trillion in July. The report also notes that stablecoins are being integrated into payment and fintech companies and are being used for cross-border payments, with Bernstein stating that stablecoins on crypto rails are now the cheapest option for such transactions. Stablecoins are particularly popular among younger individuals in emerging markets, with 20% of 18-24 year olds holding a significant portion of their portfolios in stablecoin assets.



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