Author: Chi Anh, Ryan Yoon Source: Tiger Research Translation: Shan Oba, Jinse Finance
TL;DR
Russia's use of stablecoins in oil trade demonstrates that stablecoins are no longer a marginal product—they are playing a true financial infrastructure role in high-risk, cross-border trade.
Despite cryptocurrency restrictions domestically, China and India are benefiting from stablecoin transactions with Russia and quietly experiencing the efficiency of decentralized finance at the national level.
Governments worldwide have varied responses, but all acknowledge that stablecoins are reshaping the way value flows across borders.
1. Stablecoins as Strategic Currency Under Sanctions Shadow
The global role of stablecoins is rapidly transforming from a speculative tool to a practical financial instrument—initially for individual users, then expanding to institutions, and now to the national level.
Initially, stablecoins like USDT and USDC were used by crypto users for trading, fund transfers, and liquidity management, especially in markets with weak banking infrastructure or capital controls, providing users with more convenient access to US dollars.
Subsequently, stablecoins gradually penetrated institutional and B2B business scenarios. In cross-border payments, supply chain settlements, and payroll, companies, especially in emerging markets, have increasingly adopted stablecoins as alternatives to traditional financial systems. Compared to wire transfers through SWIFT or intermediary banks, stablecoin transactions are not only low-cost and almost instant but also reduce dependence on intermediaries.
Today, some countries are beginning to use stablecoins as strategic tools, especially in the context of facing sanctions or seeking to break free from the US dollar-dominated international financial system, such as Russia. Stablecoins are evolving from corporate efficiency tools to political means at the national level. This report will analyze through actual cases how stablecoins are used to bypass restrictions, reduce costs, and open new trade channels.
2. Behind the Scenes: How Global Trade Quietly Adapts to Stablecoins
In March 2025, Reuters reported that Russia has introduced stablecoins like USDT and major cryptocurrencies such as Bitcoin and Ethereum into its oil trade with China. This approach is clearly one of its strategies to circumvent Western sanctions.
The entire transaction process is relatively simple: the Chinese buyer transfers RMB to an intermediary, which then converts it to stablecoins or other digital assets and transfers it to the Russian exporter, who finally converts it to rubles. This mechanism bypasses the Western financial system, enhancing transaction resilience and reducing sanction risks.
Among these digital assets, stablecoins play a particularly critical role. While Bitcoin and Ethereum are occasionally used, their price volatility makes them difficult for large-scale transactions. Stablecoins like USDT, with their price stability, high liquidity, and convenient transfer performance, have become the ideal choice for cross-border settlements, especially in environments constrained by international financial restrictions.
Notably, despite China's strict domestic cryptocurrency trading regulations, in the context of energy trade with Russia, officials seem to adopt a "tacit approval" attitude towards stablecoin transactions. This unsupported but practically tolerated stance reflects a pragmatic choice under geopolitical pressure.
This "cautiously regulated yet practically accepted" dual attitude reveals a trend: even in strictly restricted countries, digital assets are quietly accepted due to their practical utility. For China, stablecoin-based settlement provides a new pathway to bypass the US dollar system while ensuring uninterrupted commodity supply chains.
Russia is not the only country adopting this approach. Other sanctioned countries, including Iran and Venezuela, have also turned to using stablecoins to maintain international trade. These examples demonstrate that using stablecoins as a tool to maintain commercial functions is increasingly prevalent in politically constrained environments.
Even if sanctions are relaxed over time, stablecoin-based settlements may continue. Their operational advantages—faster transaction speeds and lower costs—are highly significant. As price stability becomes increasingly crucial in cross-border trade, more countries are expected to intensify discussions about stablecoin adoption.
3. Global Stablecoin Development Momentum: Regulatory Updates and Institutional Changes
Russia has particularly experienced the practical utility of stablecoins firsthand. After the US froze wallets linked to the sanctioned exchange Garantex, Russian Finance Ministry officials called for developing a ruble-backed stablecoin—a domestic alternative to USDT—to reduce dependence on foreign issuers and protect future transactions from external control.
Beyond Russia, other countries are accelerating stablecoin application exploration. While Russia's primary motivation is to circumvent external sanctions, many other countries view stablecoins as tools to strengthen monetary sovereignty or more effectively respond to geopolitical changes. Stablecoins' appeal also stems from their faster, cheaper cross-border transfer potential, highlighting their importance as a driver of financial infrastructure modernization.
[The rest of the translation continues in the same professional manner, maintaining the original structure and meaning while translating to English.]This development goes beyond the scope of sanctions evasion. Initially tested at the retail level, it has now developed into institutional integration, and in some cases even to the national level - making stablecoins one of the few blockchain-based innovations that demonstrate true product-market fit. Therefore, stablecoins are increasingly viewed as a legitimate component of the modern financial system, rather than a tool for illegal activities.
Institutions that view stablecoins as a structural element of future financial architecture, rather than a temporary solution, are likely to dominate the next wave of financial innovation. In contrast, institutions that hesitate to participate may be forced to adapt to standards developed in their absence. Therefore, for policymakers and financial leaders, understanding the nature and long-term potential of stablecoins, and developing strategies aligned with the direction of global financial system development, is crucial.
