In its research report published on Thursday, broker Bernstein emphasized that stablecoins are the 18th largest holders of US Treasury securities. This reveals that stablecoins have an important place not only among cryptocurrencies but also among traditional financial instruments.

A stablecoin is a type of cryptocurrency designed to hold a fixed value, usually pegged to the US dollar. Besides this, some other currencies and assets, such as precious metals such as gold, are also used.

This feature of stablecoins makes them a safer alternative to volatile cryptocurrencies. After a decline in supply in 2023, stablecoin circulation has now reached an all-time high.

Monthly payments volume has tripled in the last 12 months, reaching $1.4 trillion in July. This increase shows how important the role of stablecoins in the digital economy has become.

Analysts note that stablecoins are expanding the digital dollar beyond the US by providing international users with access to USD savings. This presents a huge advantage for individuals and businesses around the world.

Stablecoins are experiencing increasing integration around the world and collaborations with major payment and fintech companies such as PayPal, MercadoLibre and Grab. The services offered by these companies using stablecoins make it easier to use digital currencies and appeal to a wide range of users.

Stablecoins are also increasingly preferred for cross-border payments. According to Bernstein’s report, USD stablecoins on crypto infrastructure are among the cheapest cross-border payment methods.

For example, in layer 2s, transferring $1,000 can be done for as little as 1 cent. This offers a significant advantage, especially for international trade and money transfers, and increases the speed of transactions. This efficiency in cross-border payments helps businesses reduce costs and gain a competitive advantage.

Layer-1 blockchain is defined as the base layer or infrastructure of a blockchain, while layer-2s function as separate blockchains that increase scalability and speed of transactions.

This structure allows users to perform transactions faster and at lower costs. Layer 2 solutions enable stablecoins to be used effectively across a broader ecosystem.

Stablecoin holders tend to use these cryptocurrencies as a store of value against local currencies for users outside the US. Especially the younger generation is increasing its interest in stablecoins.

It is stated that 20% of individuals aged 18-24 in emerging markets invest 25-50% of their portfolios in such digital assets. This is an important indicator that stablecoins will reach a wider user base in the future.

As a result, the role of stablecoins in the global financial system is increasing and the areas of use of such digital assets are expanding. High supply levels and increasing integrations make stablecoins an important part of the modern financial ecosystem.

The advantages of stablecoins, especially low costs and fast transactions in cross-border payments, indicate that these assets will become more widespread in the future. Thus, stablecoins are on their way to becoming an important financial tool for both individuals and businesses.