How Stablecoin is Changing Global Trade Beyond Sanctions
Quiet Flows, Big Shifts: Stablecoins Enter the Geopolitical Trade Arena
This report was written by Tiger Research, analyzing how stablecoins are transforming global trade beyond sanctions, their growing role as legitimate financial infrastructure, and their adoption by countries like Russia and China.
TL;DR
Russia's use of stablecoins in the oil trade signals that stablecoins are no longer fringe - they are functioning as real financial infrastructure in high-stakes, cross-border commerce.
China and India, despite domestic crypto restrictions, are benefiting from stablecoin-based transactions with Russia, quietly experiencing the efficiencies of decentralized finance at the national level.
Governments around the world are responding in different ways, but all acknowledge that stablecoins are reshaping the way value moves across borders.
1. Stablecoin Emerges As A Strategic Currency Amid Sanctions
Stablecoins are gaining global relevance not just as speculative instruments, but as practical financial tools—first for individuals, then institutions, and now entire countries.
Their rise began in crypto-native environments, where traders used stablecoins like USDT and USDC to trade, move capital efficiently, and access liquidity across centralized and decentralized platforms. In particular, they have enhanced dollar access in markets with limited banking infrastructure or capital controls.
From there, stablecoin adoption spread into institutional and B2B use cases. Businesses began using stablecoins for cross-border payments, supplier settlements, and payroll, especially in emerging markets where traditional banking was unreliable or expensive. Unlike wire transfers routed through SWIFT or correspondent banks, stablecoin transactions settle near-instantly, without intermediaries, and at significantly lower cost. This made them not only efficient but increasingly essential for companies operating across politically or economically unstable regions.
Now, stablecoins are being tested at the country level, where their role shifts from convenience to strategy. Countries facing sanctions or seeking alternatives to the U.S.-dominated financial system, like Russia, have turned to stablecoins.
As stablecoins move from enterprise tools to instruments of state-level trade, their role is evolving from operational convenience to political necessity. This report will examine how stablecoins are being used to circumvent restrictions, reduce costs, and unlock new trade routes through the lens of real-world case studies.
2. Stablecoins in Action: How Global Trade Is Adapting Behind the Scenes
Russia has increasingly incorporated stablecoins such as USDT, alongside major crypto like Bitcoin and Ethereum, into its oil trade with China. According to a Reuters report from March 2025, this represents a strategic effort to circumvent Western sanctions.
The transaction model is relatively straightforward. Chinese buyers transfer domestic currency (such as the yuan) to intermediaries, who convert it into stablecoins or other digital assets. These are then transferred to Russian exporters, who convert the funds into rubles. By excluding Western financial intermediaries, this process reduces sanctions exposure and enhances transactional resilience.
Among digital assets used in such trades, stablecoins play a particularly critical role. While Bitcoin and Ethereum are occasionally involved, their price volatility makes them less suitable for large-volume transactions. In contrast, stablecoins such as USDT provide price stability, high liquidity, and ease of transfer—qualities that support their growing role in cross-border settlement under constraints.
Notably, China continues to enforce strict restrictions on domestic cryptocurrency usage. However, in the context of energy trade with Russia, authorities appear to tolerate stablecoin transactions. While there is no formal endorsement, this selective tolerance reflects pragmatic priorities, particularly the need to maintain commodity supply chains amid geopolitical pressure.
This dual posture - regulatory caution coupled with practical engagement - highlights a trend: the discreet adoption of digital assets for their operational utility, even within officially restrictive regimes. For China, stablecoin-based settlement offers a way to bypass traditional banking systems, reduce dependence on the U.S. dollar, and safeguard trade continuity.
Russia is not alone in this approach. Other sanctioned nations, including Iran and Venezuela, have similarly turned to stablecoins to sustain international trade. These examples point to a growing pattern of using stablecoins as tools for maintaining commercial functionality in politically constrained environments.
Even if sanctions ease over time, stablecoin-based settlement is likely to remain in use. The operational benefits—faster transaction speeds and lower costs—are significant. As price stability becomes an increasingly critical factor in cross-border trade, more countries are expected to intensify discussions around stablecoin adoption.
3. Global Stablecoin Momentum: Regulatory Updates and Institutional Shifts
Russia, in particular, has experienced the practical utility of stablecoins firsthand. After the U.S. froze wallets linked to sanctioned exchange Garantex, officials at the Finance Ministry called for the development of a ruble-backed stablecoin — a domestic alternative to USDT that would reduce reliance on foreign issuers and shield future transactions from external control.
Beyond Russia, several other countries are also accelerating their exploration of stablecoin adoption. While Russia's primary motivation lies in circumventing external sanctions, many others view stablecoins as a tool to strengthen monetary sovereignty or to respond more effectively to geopolitical shifts. The appeal also stems from the potential for faster and cheaper cross-border transfers, highlighting stablecoins as a driver of financial infrastructure modernization.
Thailand: Approved USDT, USDC trading in March 2025 by the SEC.
Japan: In March 2025, SBI VC Trade collaborates with Circle to introduce USDC, with regulatory approval from the Japan Financial Services Agency (JFSA).
Singapore: In August 2023, the regulatory framework for single-currency stablecoins (pegged to Singapore dollar or G10 currencies) was established, allowing issuance by both banks and non-banks.
Hong Kong: A stablecoin bill was announced in December 2024, requiring issuers to be licensed by the HKMA; a regulatory sandbox is underway.
US: No comprehensive legislation. In April 2025, the SEC stated that fully backed stablecoins like USDC and USDT aren’t securities. The GENIUS Act, passed by the Senate Banking Committee in March 2025, aims to regulate payment stablecoins. USDC and USDT remain widely used.
South Korea: Major domestic banks are preparing to jointly issue the first Korean won stablecoin.
Two critical trends emerge from these developments. First, stablecoin regulation is moving beyond conceptual discussion. Governments are actively shaping the legal and operational parameters that will govern their use. Second, a clear geographic divergence is forming. While countries such as Japan and Singapore are enabling regulated stablecoin integration, others like Thailand are adopting more restrictive approaches to protect domestic monetary control.
Despite this divergence, a shared recognition is apparent. Stablecoins are becoming a permanent fixture within global financial infrastructure. Some see them as a challenge to sovereign currencies, while others view them as a tool for faster and more efficient global trade payments. As a result, their importance is rising across regulatory, institutional, and commercial sectors.
4. Stablecoins Are Not a Workaround — They Are a New Financial Infrastructure Layer
The growing use of stablecoins in cross-border transactions reflects a fundamental shift in financial infrastructure, rather than a mere attempt to bypass regulation. Even countries historically skeptical of cryptocurrencies, such as China and India, have begun to indirectly leverage stablecoins in strategic commodity trade, experiencing their practical utility firsthand.
This development goes beyond sanctions circumvention. What began as retail-level experimentation has evolved into institutional and, in some cases, state-level integration—making stablecoins one of the few blockchain-based innovations to demonstrate real product–market fit. As a result, stablecoins are increasingly seen not as tools for illicit activity, but as legitimate components of modern financial systems.
Institutions that recognize stablecoins as structural elements of future financial architecture—rather than temporary workarounds—will likely take the lead in the next wave of financial innovation. In contrast, those that delay engagement risk being forced to adapt to standards set in their absence. For policymakers and financial leaders, it is therefore essential to understand the nature and long-term potential of stablecoins and to formulate strategies aligned with the evolving direction of the global financial system.
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