According to ChainCatcher, brokerage firm Bernstein said in a research report on Thursday that stablecoins are becoming increasingly important to the global financial system and have become the 18th largest holder of U.S. Treasury bonds.

After a supply decline in 2023, stablecoin issuance is now back to an all-time high of $170 billion, with monthly on-chain payment volume tripling over the past 12 months, reaching $1.4 trillion in July, the report said.

The report noted that these cryptocurrencies are increasingly integrated with payment and fintech companies such as PayPal (PYPL), MercadoLibre (MELI) and Grab (GRAB). Stablecoins are also increasingly used for cross-border payments. Bernstein said: "Dollar stablecoins on crypto rails are now the cheapest cross-border payment rail."