Still waters run deep, great changes are coming. How will stablecoins get involved in the geopolitical trade arena?
Written by: Tiger Research
This report, written by Tiger Research, analyzes how stablecoins are changing global trade beyond sanctions, their increasingly important role as legitimate financial infrastructure, and the adoption by countries such as Russia and China.
Key Points Summary
Russia's use of stablecoins in the oil trade shows that stablecoins are no longer marginal instruments – they have become real financial infrastructure in high-risk cross-border commerce.
Despite the restrictions on domestic cryptocurrencies in China and India, they benefit from stablecoin transactions 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. The Rise of Stablecoins 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 both 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 extended to institutional and B2B use cases. Businesses 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, requiring no intermediaries and significantly reducing costs. This makes stablecoins not only efficient but also 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 corporate tools to instruments of trade at the national level, 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.
The Practical Applications 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 circumvent Western sanctions.
The trading model is relatively simple. Chinese buyers transfer domestic currency (, such as RMB ), to an intermediary. The intermediary converts it into stablecoin 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 transaction resilience.
Stablecoins play a particularly crucial 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 growing role in cross-border settlements in constrained environments.
It is worth noting that China continues to impose strict restrictions on domestic cryptocurrency use. 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—cautious regulation combined with practical participation—highlights a trend: even within officially restrictive regimes, digital assets are quietly being adopted for their operational practicality. For China, stablecoin-based settlements offer a way to bypass traditional banking systems, reduce dependence on the dollar, and ensure trade continuity.
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 constrained environments is on the rise.
Even if sanctions ease over time, settlements based on stablecoins may continue to be used. Its operational advantages—faster transaction speeds and lower costs—are quite significant. As price stability becomes an increasingly critical factor in cross-border trade, more countries are expected to intensify discussions on the adoption of stablecoins.
3. Global Stablecoin Momentum: Regulatory Updates and Institutional Shifts
Russia, in particular, has experienced the practicality of stablecoins through firsthand practice. After the U.S. froze wallets associated with the sanctioned trading platform Garantex, Russian Treasury officials called for the development of a ruble-backed stablecoin – a domestic alternative that would reduce dependence 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 a tool to enhance monetary sovereignty or respond more effectively to geopolitical changes. Its appeal also lies in the potential for faster cross-border transfers at lower costs, highlighting the role of stablecoins as a driving force for the modernization of financial infrastructure.
Thailand: In March 2025, the Thai Securities and Exchange Commission approved the trading of USDT and USDC.
Japan: In March 2025, SBI VC Trade partnered with Circle to launch USDC, obtaining regulatory approval from the Japan Financial Services Agency (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 is set to 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 are not considered securities. In March 2025, the Senate Banking Committee passed the GENIUS Act aimed at regulating payment stablecoins. USDC and USDT are still widely used.
South Korea: Major domestic banks are preparing to jointly issue the first Korean won stablecoin.
These developments reveal two key trends. First, the regulation of stablecoins 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 the integration of regulated stablecoins, while countries 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 component of the global financial infrastructure. Some countries see them as a challenge to sovereign currencies, while others view them as a faster and more efficient tool for global trade payments. As a result, the importance of stablecoins is rising in regulatory, institutional, and commercial spheres.
4. Stablecoins are not a stopgap — they are a new layer of financial infrastructure
The increasing use of stablecoins in cross-border transactions reflects a fundamental shift in financial infrastructure, not merely an attempt to evade regulation. Even historically skeptical countries towards cryptocurrencies, such as China and India, are beginning to indirectly utilize stablecoins in strategic commodity trading, 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. As a result, stablecoins are increasingly seen as a legitimate component of the modern financial system rather than a tool for illegal activities.
Institutions that view stablecoins as structural elements of future financial architecture—rather than temporary solutions—may lead 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 aligned with the evolving direction of the global financial system.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
How stablecoins are changing global trade outside of sanctions
Written by: Tiger Research
This report, written by Tiger Research, analyzes how stablecoins are changing global trade beyond sanctions, their increasingly important role as legitimate financial infrastructure, and the adoption by countries such as Russia and China.
Key Points Summary
1. The Rise of Stablecoins 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 both 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 extended to institutional and B2B use cases. Businesses 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, requiring no intermediaries and significantly reducing costs. This makes stablecoins not only efficient but also 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 corporate tools to instruments of trade at the national level, 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.
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 circumvent Western sanctions.
The trading model is relatively simple. Chinese buyers transfer domestic currency (, such as RMB ), to an intermediary. The intermediary converts it into stablecoin 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 transaction resilience.
Stablecoins play a particularly crucial 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 growing role in cross-border settlements in constrained environments.
It is worth noting that China continues to impose strict restrictions on domestic cryptocurrency use. 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—cautious regulation combined with practical participation—highlights a trend: even within officially restrictive regimes, digital assets are quietly being adopted for their operational practicality. For China, stablecoin-based settlements offer a way to bypass traditional banking systems, reduce dependence on the dollar, and ensure trade continuity.
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 constrained environments is on the rise.
Even if sanctions ease over time, settlements based on stablecoins may continue to be used. Its operational advantages—faster transaction speeds and lower costs—are quite significant. As price stability becomes an increasingly critical factor in cross-border trade, more countries are expected to intensify discussions on the adoption of stablecoins.
3. Global Stablecoin Momentum: Regulatory Updates and Institutional Shifts
Russia, in particular, has experienced the practicality of stablecoins through firsthand practice. After the U.S. froze wallets associated with the sanctioned trading platform Garantex, Russian Treasury officials called for the development of a ruble-backed stablecoin – a domestic alternative that would reduce dependence 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 a tool to enhance monetary sovereignty or respond more effectively to geopolitical changes. Its appeal also lies in the potential for faster cross-border transfers at lower costs, highlighting the role of stablecoins as a driving force for the modernization of financial infrastructure.
These developments reveal two key trends. First, the regulation of stablecoins 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 the integration of regulated stablecoins, while countries 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 component of the global financial infrastructure. Some countries see them as a challenge to sovereign currencies, while others view them as a faster and more efficient tool for global trade payments. As a result, the importance of stablecoins is rising in regulatory, institutional, and commercial spheres.
4. Stablecoins are not a stopgap — they are a new layer of financial infrastructure
The increasing use of stablecoins in cross-border transactions reflects a fundamental shift in financial infrastructure, not merely an attempt to evade regulation. Even historically skeptical countries towards cryptocurrencies, such as China and India, are beginning to indirectly utilize stablecoins in strategic commodity trading, 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. As a result, stablecoins are increasingly seen as a legitimate component of the modern financial system rather than a tool for illegal activities.
Institutions that view stablecoins as structural elements of future financial architecture—rather than temporary solutions—may lead 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 aligned with the evolving direction of the global financial system.