Silent flow, massive transformation: Stablecoins enter the geopolitical trade stage.

**Written by:** Chi Anh, Ryan Yoon
Compile: Vernacular Blockchain
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 commerce.
Although China and India have restrictions on domestic cryptocurrencies, 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. Stablecoins are rising as strategic currencies 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 nations.
The rise of stablecoins began in the native environment of cryptocurrency, where traders use stablecoins such as USDT and USDC to trade, efficiently transfer capital, and access 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, and at significantly reduced 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. 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 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 used to circumvent restrictions, reduce costs, and open new trade routes.
2. Actual 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 evade Western sanctions.
The trading model is relatively simple. Chinese buyers transfer domestic currency (, such as Renminbi ), to intermediary institutions, which convert it into stablecoins 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 sanctions risks and enhances trading 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 increasingly important role in cross-border settlements in restricted 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, authorities seem to adopt a tolerant attitude towards stablecoin transactions. Although there is no official endorsement, this selective tolerance reflects pragmatic priorities, particularly the need to maintain commodity supply chains under geopolitical pressure.
This dual posture—combining cautious regulation with active participation—highlights a trend: even within officially restrictive regimes, digital assets are being quietly adopted for their operational practicality. For China, settlement based on stablecoins offers a way to bypass the traditional banking system, reduce reliance on the US 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 use of stablecoins as a tool to sustain business functions in politically constrained environments is on the rise.
Even if sanctions ease over time, settlement based on stablecoins may continue to be used. Its operational advantages—faster transaction speeds and lower costs—are very 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 experience. 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 reduces reliance on foreign issuers and protects future transactions from external control.
Apart from Russia, several other countries are also accelerating the exploration of stablecoin adoption. While Russia's primary motivation is to evade external sanctions, many other countries view stablecoins as a tool to enhance monetary sovereignty or to respond more effectively to geopolitical changes. Its appeal also lies in the potential for faster and cheaper cross-border transfers, 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 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 issuance by both banks and non-banks.
Hong Kong: The stablecoin bill will be announced in December 2024, requiring issuers to obtain permission 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 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, geographic 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 differentiation, there is a global consensus 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 faster and more efficient tools for global trade payments. As a result, the importance of stablecoins in regulatory, institutional, and commercial sectors is on the rise.
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, not merely an attempt to evade regulation. Even countries that have historically been skeptical of cryptocurrency, such as China and India, have begun to indirectly utilize stablecoins in strategic commodity trade, experiencing their practical utility firsthand.
This development goes beyond sanctions 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 products - 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 as temporary solutions—may take the lead 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 develop strategies that align with the evolution of the global financial system.