Stablecoins have become one of the most widely adopted applications of crypto technology, now representing a $177 billion market. Their utility has grown to rival traditional financial systems, with major corporations launching their own stablecoins and governments discussing regulations.

Stablecoins' Growing Role in Global Transactions

Stablecoins have facilitated over $5.1 trillion in transactions globally in the first half of 2024, according to a report by crypto asset manager Bitwise. This is comparable to Visa’s $6.5 trillion over the same period. Stablecoins provide an efficient means for cross-border payments, and companies like PayPal, Ripple, and Robinhood are integrating stablecoins into their operations.

Stripe's Acquisition of Bridge

Earlier this week, payments giant Stripe finalized a $1.1 billion acquisition of stablecoin API firm Bridge, solidifying stablecoins' role in mainstream financial infrastructure. This acquisition, the largest in crypto history, highlights how stablecoins are becoming a "systemically important" part of the financial ecosystem. According to Bernstein's digital asset lead Gautam Chhugani, stablecoins' integration into corporate systems provides businesses with a cheaper and faster alternative to traditional payment methods.

Investment Opportunities in Stablecoins

Stablecoins are not just facilitating transactions; they also hold U.S. Treasuries, creating liquidity in the financial system. Tether and Circle, two of the largest stablecoin issuers, have amassed large holdings of U.S. debt, and their profits from investing in these assets have outpaced global financial giants. As the market matures, companies exposed to stablecoins, such as Visa and PayPal, are expected to offer new investment opportunities.
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