How stablecoins can change global trade beyond sanctions

Author: Chi Anh, Ryan Yoon; Source: Tiger Research; Compiler: Plain Language Blockchain

TL;DR

Russia's use of stablecoins in oil trade shows that stablecoins are no longer fringe tools - they have become real financial infrastructure in high-risk cross-border commerce.

Despite restrictions on domestic cryptocurrencies, China and India have benefited from stablecoin transactions with Russia, quietly experiencing the efficiency of decentralized finance at the national level.

Governments around the world have responded in different ways, but all acknowledge that stablecoins are reshaping the way value flows across borders.

1. The rise of stablecoins as strategic currencies under sanctions

The global importance of stablecoins is increasing, not only as a speculative tool, but also as a practical financial tool - first for individuals, then institutions, and now entire countries.

The rise of stablecoins began in crypto-native environments, with traders using stablecoins such as USDT and USDC to trade, efficiently transfer capital, and access liquidity on centralized and decentralized platforms. Stablecoins have enhanced access to the U.S. dollar, especially in markets with limited banking infrastructure or capital controls.

Then, stablecoin adoption expanded to institutional and B2B use cases. Businesses began using stablecoins for cross-border payments, supplier settlements, and payroll, especially in emerging markets where traditional banking services are unreliable or costly. Stablecoin transactions are settled almost instantly, without intermediaries, and at significantly lower costs than wire transfers through SWIFT or correspondent banks. This makes stablecoins not only efficient, but increasingly indispensable for companies operating in politically or economically unstable regions.

Now, stablecoins are being tested at the national level, with their role shifting from convenience to strategic. Countries facing sanctions or seeking alternatives to the U.S.-dominated financial system, such as Russia, have turned to stablecoins.

As stablecoins move from being a corporate tool to a tool for trade at the national level, their role evolves from operational convenience to political necessity. This report will explore how stablecoins are being used to circumvent restrictions, reduce costs, and open new trade routes through real-world case studies.

2. Practical Applications of Stablecoins: How Global Trade Adapts Behind the Scenes

Source: Statista

Russia is increasingly incorporating stablecoins such as USDT, as well as major cryptocurrencies such as Bitcoin and Ethereum, into its oil trade with China. According to a March 2025 Reuters report, this represents a strategic effort to circumvent Western sanctions.

The transaction model is relatively simple. Chinese buyers transfer domestic currency (such as RMB) to intermediaries, who convert it into stablecoins or other digital assets. These assets are then transferred to Russian exporters, who then convert the funds into rubles. By excluding Western financial intermediaries, this process reduces sanctions risk and enhances transaction resilience.

Among the digital assets used in these transactions, stablecoins play a particularly key role. Although Bitcoin and Ethereum are occasionally used, their price volatility makes them unsuitable for large transactions. In contrast, stablecoins such as USDT offer price stability, high liquidity and easy transferability, qualities that support their growing role in cross-border settlements in restricted environments.

It is worth noting that China continues to impose strict restrictions on the use of cryptocurrencies domestically. However, in the context of energy trade with Russia, the authorities appear to be tolerant of stablecoin transactions. While not formally endorsed, this selective tolerance reflects pragmatic priorities, especially the need to maintain commodity supply chains under geopolitical pressure.

This dual stance—combining regulatory caution with practical engagement—underscores a trend: Even within officially restrictive regimes, digital assets are quietly being adopted for their operational practicality. For China, stablecoin-based settlements offer a way to bypass the traditional banking system, reduce reliance on the dollar, and safeguard trade continuity.

Source: Chainalysis

Russia is not alone. Other sanctioned countries, such as Iran and Venezuela, have similarly turned to stablecoins to maintain international trade. These examples suggest that stablecoins are growing in usage patterns as a tool to maintain commercial functions in politically constrained environments.

Even if sanctions ease over time, stablecoin-based settlements are likely to continue to be used. The operational advantages—faster transactions and lower costs—are significant. As price stability becomes an increasingly critical factor in cross-border trade, more countries are expected to step up discussions on stablecoin adoption.

3. Global Stablecoin Momentum: Regulatory Updates and Institutional Shifts

Russia in particular has experienced the usefulness of stablecoins firsthand. After the United States froze wallets associated with sanctioned trading platform Garantex, Russian Finance Ministry officials called for the development of a ruble-backed stablecoin—a domestic alternative that reduces reliance on foreign issuers and protects future transactions from external control.

In addition to Russia, several other countries are also accelerating their exploration of stablecoin adoption. While Russia's main motivation is to circumvent external sanctions, many other countries see stablecoins as a tool to enhance monetary sovereignty or respond more effectively to geopolitical changes. Its appeal also lies in the potential for faster and cheaper cross-border transfers, highlighting the role of stablecoins as a driver of financial infrastructure modernization.

Thailand: In March 2025, the Thai SEC approved USDT and USDC transactions.

Thailand: In March 2025, the Thai Securities and Exchange Commission approved USDT and USDC transactions.

Japan: In March 2025, SBI VC Trade partnered with Circle to launch USDC, which was approved by the Japanese Financial Services Agency (JFSA).

Singapore: In August 2023, a regulatory framework for single-currency stablecoins (pegged to the Singapore dollar or G10 currencies) was established, allowing banks and non-banks to issue them.

Hong Kong: Stablecoin bill announced in December 2024, requiring issuers to obtain a license from the Hong Kong Monetary Authority; regulatory sandbox is underway.

United States: No comprehensive legislation yet. In April 2025, the SEC stated that fully-backed stablecoins such as USDC and USDT are not securities. In March 2025, the GENIUS Act passed by the Senate Banking Committee aims to regulate payment stablecoins. USDC and USDT are still widely used.

South Korea: Major domestic banks are preparing to jointly issue the first Korean won stablecoin.

These developments reveal two key trends. First, stablecoin regulation has moved beyond conceptual discussions, and governments are actively shaping its legal and operational parameters. Second, geographical differentiation is taking shape. Countries like Japan and Singapore are pushing for regulated stablecoin integration, while countries like Thailand are taking stricter measures to protect domestic monetary controls.

Despite this division, there is a general global recognition that stablecoins are becoming a permanent part of the global financial infrastructure. Some countries see them as a challenge to sovereign currencies, while others see them as a faster and more efficient payment tool for global trade. As a result, the importance of stablecoins in regulatory, institutional and commercial circles is rising.

4. Stablecoins are not a stopgap measure - they are a new financial infrastructure layer

The growing use of stablecoins in cross-border transactions reflects a fundamental shift in financial infrastructure, not just an attempt to circumvent regulation. Even countries that have historically been skeptical of cryptocurrencies, such as China and India, have begun to use stablecoins indirectly in strategic commodity trade, experiencing their real utility firsthand.

This development goes beyond sanctions circumvention. Initial retail-level experiments have evolved into institutional and even national-level integration, making stablecoins one of the few blockchain innovations that has demonstrated real product-market fit. As a result, stablecoins are increasingly viewed as a legitimate part of the modern financial system, rather than a tool for illicit activity.

Institutions that view stablecoins as a structural element of the future financial architecture—rather than an ad hoc solution—may be in a position to lead the next wave of financial innovation. Conversely, those that delay participation risk passively adapting to standards set by others. Policymakers and financial leaders must therefore understand the nature of stablecoins and their long-term potential, and develop strategies that are consistent with the direction in which the global financial system is evolving.