📶📶Stablecoins are becoming more important to the global financial system, and constitute the 18th-largest holders of U.S. Treasuries, broker Bernstein said in a research report on Thursday.📈📈
A stablecoin is a type of cryptocurrency designed to hold a steady value and is usually pegged to the U.S. dollar, though some other currencies and assets such as gold are also used.🤗🤗
After a dip in supply in 2023, stablecoin circulation is now back to an all-time high of $170 billion, the report said, and monthly payments volume on-chain has tripled in the last 12 months to $1.4 trillion in July.😘😘
"Stablecoins provide USD savings access to international users, propagating digital dollars beyond the U.S.," analysts led by Gautam Chhugani wrote.
😎😎These cryptocurrencies are seeing increased integration with payments and fintech companies, such as PayPal (PYPL), MercadoLibre (MELI) and Grab (GRAB), the report noted.🥈🥈
Stablecoins are also increasingly being used for cross-border payments.🥰🥰 "USD stablecoins on crypto rails are now the cheapest cross-border payments rails," Bernstein said, adding that you can transfer $1,000 on layer 2s for as little as 1 cent.
A layer-1 blockchain is the base layer, or the underlying infrastructure of a blockchain. Layer 2s are separate blockchains, built on layer 1s, that improve scaling and speed.🎗🎗
Stablecoin holders outside the U.S. use these cryptos as a store of value versus their local currency, Bernstein said, and younger people use them more, with 20% of 18-24 year olds in emerging markets holding 25%-50% of their portfolios in this type of digital asset.🥰🥰
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