Stablecoins are reshaping the global trade landscape

A recent in-depth report analyzed how stablecoins impact global trade, particularly in sanctioned countries, and their increasingly important role as legitimate financial infrastructure.

Main Points

• Stablecoins have become a practical financial infrastructure in high-risk cross-border transactions, no longer just a marginal tool.

• Even countries that are cautious about cryptocurrencies are experiencing the efficiency of decentralized finance through stablecoin trading with other countries.

• Governments around the world are taking different approaches, but there is a general consensus that stablecoins are changing the way cross-border value flows.

Stablecoin: From Speculative Tool to Strategic Currency

Stablecoins initially gained popularity in cryptocurrency trading and later expanded to institutional and corporate applications, such as cross-border payments and payroll. Currently, stablecoins are being tested at the national level, and their role has shifted from a convenience tool to a strategic asset.

Countries facing sanctions or seeking alternatives to the dollar-dominated financial system are turning to the use of stablecoins. This shift reflects the evolution of stablecoins from corporate tools to national-level trade instruments, with their importance rising from operational convenience to political necessity.

The Practical Application of Stablecoins in Global Trade

Some countries are incorporating stablecoins such as USDT and major cryptocurrencies like Bitcoin and Ethereum into oil trade. This practice aims to circumvent sanctions and enhance trading resilience.

The trading process typically involves converting local currency into stablecoins or other digital assets, and then transferring them to the counterparty. This method bypasses Western financial intermediaries and reduces the risk of sanctions.

In these transactions, stablecoins play a key role. Compared to Bitcoin and Ethereum, stablecoins like USDT offer price stability, high liquidity, and ease of transfer, making them more suitable for large transactions.

It is worth noting that while some countries impose strict restrictions on domestic cryptocurrency use, they adopt a tolerant attitude towards stablecoin transactions in specific trade contexts. This dual stance reflects practical considerations, particularly regarding the supply chains of commodities under geopolitical pressure.

Global Stablecoin Development Trends

Several countries are actively exploring the adoption of stablecoins. Some countries view them as tools to enhance monetary sovereignty or respond to geopolitical changes, while others appreciate their efficiency and cost advantages in cross-border transfers.

• Thailand has approved the trading of USDT and USDC.
• Japan has launched a regulated USDC.
• Singapore has established a regulatory framework for a single currency stablecoin.
• Hong Kong has announced a stablecoin bill.
• The United States is discussing relevant legislation.
• Major banks in South Korea are preparing to issue the first Korean won stablecoin.

These developments indicate that stablecoin regulation has shifted from conceptual discussions to practical operations, with countries actively shaping their legal and operational parameters. At the same time, regional differences are also emerging, with some countries promoting the integration of regulated stablecoins, while others are adopting stricter measures to protect their national currency control.

Stablecoin: A New Financial Infrastructure

The growth of stablecoins in cross-border transactions reflects a fundamental shift in financial infrastructure. Even countries that are cautious about cryptocurrencies are beginning to indirectly use stablecoins in strategic commodity trade.

This development goes beyond mere sanction evasion. Stablecoins have evolved from retail-level experiments to integration at the institutional and even national levels, demonstrating a genuine product-market fit. As a result, stablecoins are increasingly viewed as a legitimate component of the modern financial system.

Institutions that view stablecoins as fundamental elements of future financial architecture may gain an advantage in the next wave of financial innovation. In contrast, institutions that delay participation may face the risk of passively adapting to standards set by others. Therefore, policymakers and financial leaders need to gain a deep understanding of the nature of stablecoins and their long-term potential, and to develop strategies that align with the evolving direction of the global financial system.