Stripe's acquisition of Bridge validates the usage of stablecoins for public blockchains, broker Bernstein said in a research report on Tuesday.

"With improvements in blockchain scalability, stablecoins have emerged as the leading use case for blockchains, particularly for cross-border payments," analysts led by Gautam Chhugani wrote.

U.S. dollar-denominated stablecoins on crypto platforms are now the cheapest method of cross-border payments, costing only 1-2 basis points, the report noted.

Payments processor Stripe finalized a deal to acquire stablecoin platform Bridge for $1.1 billion, a transaction that was confirmed by both companies and originally highlighted by TechCrunch founder Michael Arrington.

Bernstein emphasized that the Bridge deal represents the largest acquisition of a cryptocurrency entity by a prominent payments company to date. Companies such as Bridge play a crucial role in providing API software that enables businesses to incorporate stablecoin payments seamlessly into their standard payment processes.

This transaction underscores the increasing acceptance of stablecoin payments and their significant advantages, according to investment bank Architect Partners, highlighting that these coins are being adopted by companies outside the cryptocurrency sector.

It's challenging to identify a more disruptive alternative to the traditional banking system than making "payments at scale without the involvement of a bank," the report concluded.