How stablecoins can surpass sanctions to change global trade

Source: Tiger Research

Compilation: Vernacular Blockchain

TL;DR

Russia's use of stablecoins in oil trade indicates that stablecoins are no longer a marginal tool — they have become a real financial infrastructure in high-risk cross-border commerce.

Despite the restrictions on domestic cryptocurrencies in China and India, they benefit from stablecoin trading with Russia, quietly experiencing the efficiency 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 flows across borders.

1. Stablecoins Rise as Strategic Currency under Sanctions

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

The rise of stablecoins began in the native environment of cryptocurrency, where traders use stablecoins such as USDT and USDC for trading, efficiently transferring capital, and obtaining liquidity on centralized and decentralized platforms. Especially in markets with limited banking infrastructure or capital controls, stablecoins enhance access to the US dollar.

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

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

As stablecoins transition from being corporate tools to instruments of state-level trade, their role evolves from operational convenience to political necessity. This report will explore through real-world case studies how stablecoins are used to circumvent restrictions, reduce costs, and open new trade routes.

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

Source: Statista

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

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

Stablecoins play a particularly critical role among the digital assets used in these transactions. While Bitcoin and Ethereum are occasionally used, their price volatility makes them unsuitable for large transactions. In contrast, stablecoins like USDT offer price stability, high liquidity, and ease of transfer, qualities that support their increasingly important role in cross-border settlements in restricted environments.

It is worth noting that China continues to impose strict restrictions on the domestic use of cryptocurrencies. However, in the context of energy trade with Russia, the authorities seem to adopt a tolerant attitude towards stablecoin transactions. Although there is no formal endorsement, this selective tolerance reflects pragmatic priorities, especially the need to maintain commodity supply chains under geopolitical pressure.

This dual posture - a combination of cautious regulation and practical participation - highlights a trend: even within officially restrictive regimes, digital assets are quietly being adopted for their operational utility. For China, settlements based on stablecoins provide a way to bypass traditional banking systems, reduce reliance on the US dollar, and ensure continuity of trade.

Source: Chainalysis

Russia is not an isolated case. Other sanctioned countries, such as Iran and Venezuela, are also turning to stablecoins to maintain international trade. These examples indicate that the use of stablecoins as a tool to sustain business functions in politically restricted environments is on the rise.

Even if sanctions ease over time, settlement based on stablecoins may continue to be used. Its operational advantages—faster transaction speeds and lower costs—are very significant. As price stability becomes an increasingly critical factor in cross-border trade, it is expected that more countries will intensify discussions on the adoption of stablecoins.

3. Global Stablecoin Momentum: Regulatory Updates and Institutional Shifts

Russia has particularly experienced the practicality of stablecoins through hands-on practice. After the U.S. froze wallets associated with the sanctioned trading platform Garantex, Russian finance ministry officials called for the development of a ruble-backed stablecoin—a domestic alternative to reduce reliance on foreign issuers and protect future transactions from external control.

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

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

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

Japan: In March 2025, SBI VC Trade partnered with Circle to launch USDC, receiving regulatory approval from the Financial Services Agency of Japan (JFSA).

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

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

United States: No comprehensive legislation yet. In April 2025, the SEC stated that fully-backed stablecoins like USDC and USDT do not fall under the definition of securities. In March 2025, the Senate Banking Committee passed the GENIUS Act aimed at regulating payment stablecoins. USDC and USDT remain 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 forming. Countries like Japan and Singapore are pushing for the integration of regulated stablecoins, while nations like Thailand are taking stricter measures to protect domestic currency control.

Despite this divergence, there is a global recognition that stablecoins are becoming a permanent part of the global financial infrastructure. Some countries view them as a challenge to sovereign currencies, while others see them as a faster and more efficient tool for global trade payments. Therefore, the importance of stablecoins in regulation, institutions, and business sectors is on the rise.

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

The increasing use of stablecoins in cross-border transactions reflects a fundamental shift in financial infrastructure, rather than merely an attempt to evade regulation. Even historically skeptical countries towards cryptocurrencies, such as China and India, have begun to indirectly utilize stablecoins in strategic commodity trading, experiencing their practical utility firsthand.

This development goes beyond sanctions evasion. Initial retail-level experiments have evolved into integrations at the institutional and even national levels, making stablecoins one of the few blockchain innovations that demonstrate true product-market fit. As a result, stablecoins are increasingly seen as a legitimate component of the modern financial system, rather than a tool for illicit activities.

Institutions that view stablecoins as structural elements of future financial architecture—rather than temporary solutions—may take a leading position in the next wave of financial innovation. Conversely, those institutions that delay participation may face the risk of passively adapting to standards set by others. Therefore, policymakers and financial leaders must understand the nature of stablecoins and their long-term potential, and develop strategies that are in line with the evolving direction of the global financial system.

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