Source: Tiger Research
Compiled by: Blockchain in Plain Language
TL;DR
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 business.
Despite the restrictions on domestic cryptocurrencies in China and India, they benefit from stablecoin trading with Russia, quietly experiencing the efficiency of decentralized finance at the national level.
Governments around the world are responding in different ways, but all recognize 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 just as speculative tools, but as practical financial instruments—first for individuals, then for institutions, and now for entire countries.
The rise of stablecoins began in the crypto-native environment, where traders use stablecoins like USDT and USDC for trading, efficiently transferring capital, and gaining liquidity across centralized and decentralized platforms. Particularly 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, especially in emerging markets where traditional banking services are unreliable or costly. Compared to wire transfers via SWIFT or correspondent banks, stablecoin transactions settle almost instantly, without intermediaries, and at significantly reduced costs. This has made stablecoins not only efficient but 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 strategy. 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 national trade, their role evolves from operational convenience to political necessity. This report will explore through real-world case studies how stablecoins are being used to evade restrictions, lower costs, and open new trade routes.
2. Practical Applications of Stablecoins: How Global Trade Adapts Behind the Scenes
Source: Statista
Russia is increasingly incorporating stablecoins like USDT as well as major cryptocurrencies like Bitcoin and Ethereum into its oil trade with China. According to a March 2025 report by Reuters, this represents a strategic effort to circumvent Western sanctions.
The transaction model is relatively simple. Chinese buyers transfer domestic currency (such as the yuan) to intermediary institutions, which convert it into stablecoins or other digital assets. These assets are then transferred to Russian exporters, who convert the funds into rubles. By excluding Western financial intermediaries, this process reduces the risk of sanctions and enhances transaction resilience.
In the digital assets used 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 under constrained environments.
Notably, China continues to impose strict restrictions on domestic cryptocurrency usage. However, in the context of energy trade with Russia, 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 stance—combining regulatory caution with practical engagement—highlights a trend: even within officially restrictive regimes, there is a quiet adoption of digital assets for their operational practicality. For China, stablecoin-based settlements provide a way to bypass traditional banking systems, reduce dependence on the dollar, and ensure continuity in trade.
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 usage patterns of stablecoins as tools to sustain business functions in politically constrained environments are growing.
Even as sanctions may ease over time, stablecoin-based settlements may continue to be utilized. Their operational advantages—faster transaction speeds and lower costs—are very significant. With price stability becoming an increasingly critical factor in cross-border trade, more countries are expected to intensify discussions on stablecoin adoption.
3. Global Stablecoin Momentum: Regulatory Updates and Institutional Shifts
Russia has particularly experienced the practicality of stablecoins firsthand. After the US froze wallets linked to the sanctioned exchange Garantex, officials from the Russian Ministry of Finance 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 their exploration of stablecoin adoption. While Russia's primary motivation is to evade external sanctions, many other countries see stablecoins as tools to enhance monetary sovereignty or respond more effectively to geopolitical changes. Their appeal also lies in the potential for faster cross-border remittances at lower costs, highlighting the role of stablecoins as a driver of financial infrastructure modernization.
Thailand: In March 2025, the Thai SEC approved trading of USDT and USDC.
Thailand: In March 2025, the Thai Securities and Exchange Commission approved 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 for a single currency stablecoin (pegged to the Singapore dollar or G10 currencies) was established, allowing both banks and non-banks to issue.
Hong Kong: In December 2024, a stablecoin bill was announced, requiring issuers to obtain licenses 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 do not fall under the category of securities. In March 2025, the Senate Banking Committee passed the GENIUS Act aimed at regulating 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, geographic differentiation is forming. 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 divergence, 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 tools for global trade payments. Thus, the importance of stablecoins in regulatory, institutional, and commercial domains is on the rise.
4. Stablecoins are not a stopgap—they are the new layer of financial infrastructure
The growing use of stablecoins in cross-border transactions reflects a fundamental shift in financial infrastructure, rather than just an attempt to evade regulation. Even historically skeptical countries towards cryptocurrencies, like China and India, have begun to indirectly utilize stablecoins in strategic commodity trading, experiencing their practical utility firsthand.
This development goes beyond sanction evasion. Initial retail-level experiments have evolved into integration at institutional and even national levels, making stablecoins one of the few blockchain innovations demonstrating true product-market fit. As a result, stablecoins are increasingly viewed as legitimate components of the modern financial system, rather than tools for illicit activities.
Viewing stablecoins as structural elements of future financial architecture—rather than temporary solutions—may position institutions at the forefront of the next wave of financial innovation. Conversely, those institutions that delay participation may risk passively adapting to standards set by others. Therefore, policymakers and financial leaders must understand the essence of stablecoins and their long-term potential, and develop strategies aligned with the evolution of the global financial system.
