Regulatory Fragmentation Hinders Stablecoin Adoption in International Trade
The World Trade Organization (WTO) has identified regulatory fragmentation as the main barrier to stablecoin adoption in international trade. Speaking at the launch of a WTO study on stablecoins, Juan Marchetti, director of the WTO's trade in services and investment division, emphasized that regulatory gaps across countries are hindering the use of stablecoins.
The report found that only 39% of surveyed jurisdictions had finalized stablecoin regulatory frameworks as of October 2025. This lack of regulatory convergence is preventing stablecoins from being used for cross-border payments, despite their potential to reduce frictions in international trade and trade finance.
Stablecoins currently account for only 3% of total international payments, but the WTO highlights five areas where they could ease trade-payment frictions: high costs, low speed, limited access, insufficient transparency, and foreign exchange limitations. The report also notes that cross-border stablecoin payments grew 35-fold between 2020 and mid-2024.
Marchetti emphasized that regulatory convergence is the key to unlocking the potential of stablecoins in international trade, rather than technical capabilities. He noted that developing economies could stand to gain most from stablecoin adoption, but also face tougher constraints due to their less developed regulatory regimes.