A recent survey, commissioned by Castle Island Ventures and hedge fund group Brevan Howard, highlights the increasing use of stablecoins for everyday financial activities in emerging markets. The report, based on data from over 2,500 cryptocurrency users across Brazil, Nigeria, Turkey, Indonesia, and India, reveals that while crypto trading remains the top reason for stablecoin use, other practical applications are gaining traction.

The survey found that 69% of respondents converted local currency to stablecoins, with 39% using them to purchase goods or services or to send money abroad. An additional 30% reported using stablecoins for business transactions, while 23% received or paid salaries in them.

Stablecoins are valued for their efficiency, reduced likelihood of government interference, and the ability to earn yield. Users, particularly in regions with unstable currencies and less developed banking systems, prefer stablecoins to traditional U.S. dollar banking. Tether (USDT), the leading stablecoin by market capitalization, is the most popular choice due to its liquidity, network effects, and reliability.

The report also shows that Ethereum (ETH) is the most preferred blockchain for stablecoin transactions, followed by Binance Smart Chain (BNB), Solana (SOL), and Tron (TRX).

Nic Carter, general partner at Castle Island Ventures, noted that the findings align with expectations, confirming that stablecoins are increasingly being used in daily economic activities, particularly in areas where traditional financial infrastructure is lacking.

As stablecoins, a $160 billion asset class, continue to bridge the gap between cryptocurrencies and fiat currencies, they are emerging as safe-haven assets and cost-effective payment methods in regions with a history of currency devaluations.