Key Points Summary
· Russia's use of stablecoins in oil trade demonstrates that stablecoins are no longer a marginal tool—they have become real financial infrastructure in high-risk cross-border commerce.
· Despite domestic cryptocurrency restrictions in China and India, they benefit from stablecoin transactions with Russia, quietly experiencing the efficiency of decentralized finance at the national level.
· Governments worldwide are responding differently, but all acknowledge that stablecoins are reshaping the way value moves across borders.
1. Stablecoins Rise as Strategic Currency Under Sanctions
The global importance of stablecoins is increasingly growing, not just as a speculative tool, but as a practical financial instrument—first for individuals, then for institutions, and now for entire nations. The rise of stablecoins began in the crypto-native environment, with traders using stablecoins like USDT and USDC for trading, efficiently transferring capital, and obtaining liquidity on centralized and decentralized platforms. Particularly in markets with limited banking infrastructure or capital controls, stablecoins enhanced access to the US dollar.
Subsequently, 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. Compared to wire transfers through SWIFT or correspondent banks, stablecoin transactions settle almost instantly, without intermediaries, significantly reducing costs. This made 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 importance. Countries facing sanctions or seeking alternatives to the US-dominated financial system, such as Russia, have turned to using stablecoins. As stablecoins transition from a corporate tool to a tool for national-level trade, their role has evolved from operational convenience to political necessity. This report will explore through real-world case studies how stablecoins are being used to circumvent restrictions, reduce costs, and open new trade routes.
2. Practical Applications of Stablecoins: How Global Trade Adapts Behind the Scenes
Russia is increasingly incorporating stablecoins like USDT and 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 an intermediary, which converts it to stablecoins or other digital assets. These assets are then transferred to Russian exporters, who exchange the funds into rubles. By excluding Western financial intermediaries, this process reduces sanction risks and enhances transaction resilience.
In these transactions, stablecoins play a particularly critical role. 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 growing role in cross-border settlements in restricted environments.
Notably, China continues to impose strict restrictions on domestic cryptocurrency use. However, in the context of energy trade with Russia, authorities seem to tolerate stablecoin transactions. Without formal endorsement, 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 participation—highlights a trend: digital assets are being quietly adopted even within officially restrictive regimes to gain their operational utility. For China, stablecoin-based settlements provide a way to bypass traditional banking systems, reduce dependence on the US dollar, and ensure trade continuity.
Russia is not an isolated case. Other sanctioned countries like Iran and Venezuela have similarly turned to stablecoins to maintain international trade. These examples indicate that the usage patterns of stablecoins as tools for maintaining commercial functions in politically restricted environments are growing. Even if sanctions ease over time, stablecoin-based settlements may continue to be used. Their operational advantages—faster transaction speeds and lower costs—are highly significant. As price stability becomes an increasingly critical factor in cross-border trade, more countries are expected to intensify discussions about stablecoin adoption.
3. Global Stablecoin Momentum: Regulatory Updates and Institutional Shifts
Russia has particularly experienced the utility of stablecoins through firsthand practice. After the US froze wallets associated with sanctioned trading platform Garantex, Russian Finance Ministry officials called for developing a ruble-backed stablecoin—a domestic alternative to reduce dependence on foreign issuers and protect future transactions from external control.
Beyond Russia, several other countries are accelerating stablecoin exploration. While Russia's primary motivation is to circumvent external sanctions, many other countries view stablecoins as tools to enhance monetary sovereignty or more effectively respond to geopolitical changes. Their attraction also lies in the potential for faster, lower-cost cross-border transfers, highlighting stablecoins' role as a driver of financial infrastructure modernization.
· Thailand: In March 2025, the Thai Securities and Exchange Commission approved USDT and USDC trading.
· Japan: In March 2025, SBI VC Trade partnered with Circle to launch USDC, receiving approval from the Japan Financial Services Agency (JFSA).
· Singapore: In August 2023, established a regulatory framework for single-currency stablecoins (pegged to Singapore dollar or G10 currencies), allowing banks and non-banks to issue.
· Hong Kong: Announced a stablecoin bill in December 2024, requiring issuers to obtain Hong Kong Monetary Authority licenses; a regulatory sandbox is in progress.
· United States: No comprehensive legislation yet. In April 2025, the SEC stated that fully-backed stablecoins like USDC and USDT are not securities. In March 2025, the Senate Banking Committee passed the GENIUS Act 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.
These developments reveal two key trends. First, stablecoin regulation has moved beyond conceptual discussions, with governments actively shaping their legal and operational parameters. Second, geographical differentiation is emerging. Countries like Japan and Singapore are pushing for regulated stablecoin integration, while others like Thailand are taking stricter measures to protect domestic currency control.
Despite this differentiation, there is a global recognition that stablecoins are becoming a permanent component of global financial infrastructure. Some countries view them as a challenge to sovereign currencies, while others see them as faster, more efficient global trade payment tools. Thus, the importance of stablecoins is rising in regulatory, institutional, and commercial domains.
4. Stablecoins Are Not a Stopgap—They Are a New Financial Infrastructure Layer
The growing use of stablecoins in cross-border transactions reflects a fundamental transformation of financial infrastructure, not just an attempt to circumvent regulations. Even countries historically skeptical of cryptocurrencies, like China and India, are beginning to indirectly leverage stablecoins in strategic commodity trade, experiencing their practical utility firsthand.
This development goes beyond sanction evasion. The initial retail-level experiments have evolved into integration at the institutional and even national levels, making stablecoins one of the few blockchain innovations that demonstrate real 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—may take the lead in the next wave of financial innovation. Conversely, 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 aligned with the evolution of the global financial system.
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