Tiger Research: How Stablecoins Are Changing Global Trade Beyond Sanctions

Key Points Summary

• Russia's use of stablecoins in oil trade indicates that stablecoins are no longer marginal tools - 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 trading stablecoins 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 a speculative tool but also as a practical financial instrument—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 expanded to institutional and B2B use cases. Businesses began using stablecoins for cross-border payments, vendor settlements, and payroll disbursements, 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 makes 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, shifting their role from convenience to strategic. Countries facing sanctions or seeking alternatives to the U.S.-dominated financial system, such as Russia, have turned to stablecoins.

As stablecoins transition from corporate tools to instruments for national-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 Applications of Stablecoins: How Global Trade Adapts Behind the Scenes

Source: Statista

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

The trading model is relatively simple. Chinese buyers transfer domestic currencies ( such as the Chinese Yuan ) to intermediaries, who convert them into stablecoins or other digital assets. These assets are then transferred to Russian exporters, who in turn convert the funds into rubles. By excluding Western financial intermediaries, the process reduces sanctions risk and strengthens transaction resilience.

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 growing role in cross-border settlements in constrained environments.

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

This dual posture—combining cautious regulation with practical participation—highlights a trend: even within officially restrictive regimes, digital assets are quietly being adopted for their operational utility. For China, stablecoin-based settlement offers a way to bypass traditional banking systems, reduce dependence on the 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 sustain international trade. These examples indicate that the use of stablecoins as a tool to maintain 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. Their operational advantages—faster transaction speeds and lower costs—are quite 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 firsthand practice. After the U.S. froze wallets related to the sanctioned trading platform Garantex, Russian finance officials called for the development of a ruble-backed stablecoin — a domestic alternative to 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 see stablecoins as a tool 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 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 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 is set to be announced in December 2024, requiring issuers to obtain permission from the Hong Kong Monetary Authority; a regulatory sandbox is currently in progress.
• United States: No comprehensive legislation yet. In April 2025, the SEC stated that fully backed stablecoins such as USDC and USDT do not fall under 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, stablecoin regulation has moved beyond conceptual discussions, with governments actively shaping its legal and operational parameters. Second, geographic differentiation is taking shape. 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 part of the global financial infrastructure. Some countries view them as a challenge to sovereign currencies, while others see them as faster and more efficient tools for global trade payments. As a result, the importance of stablecoins is rising in regulatory, institutional, and commercial domains.

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

The growing 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, are starting to indirectly utilize stablecoins in strategic commodity trading, experiencing their practical utility firsthand.

This development goes beyond sanctions evasion. The initial retail-level experiments have evolved into integration at institutional and even national levels, making stablecoins one of the few blockchain innovations that showcase real products - market fit. As a result, stablecoins are increasingly regarded 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 as temporary solutions—may lead the way 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 formulate strategies that align with the evolving direction of the global financial system.