The total market capitalization of stablecoins has reached a record $322 billion, surpassing the foreign exchange reserves of over 95 countries, including the UK, Canada, and Mexico. This milestone highlights the growing influence of stablecoins, which are primarily pegged to fiat currencies like the U.S. dollar. Stablecoins, particularly USDT and USDC, are increasingly used for cryptocurrency trading, DeFi settlements, and cross-border payments. The Bank for International Settlements (BIS) reports significant growth in cross-border stablecoin flows since 2022, especially in regions with high inflation and exchange-rate volatility, though they may pose risks of capital outflows and currency depreciation.