WTO Blames Regulatory Fragmentation for Slow Adoption of Global Stablecoin Use

The World Trade Organization (WTO) has identified regulatory fragmentation as the main barrier to stablecoin adoption in global trade, according to its recent study on stablecoins in world trade. Director of the WTO's trade in services and investment division, Juan Marchetti, emphasized that regulation is not a matter of whether technology can move value quickly but rather whether governments have built consistent frameworks for compliant cross-border flows.

The study found that only 39% of surveyed jurisdictions had finalized stablecoin regulatory frameworks as of October 2025. Marchetti pointed to the Financial Stability Board (FSB) assessment, which showed that most jurisdictions have not yet completed the necessary rules for broader cross-border usage. This lack of regulation is hindering the adoption of stablecoins in international trade.

Stablecoins could help reduce frictions in international trade and trade finance by addressing issues such as cost, speed, access, transparency, and foreign exchange constraints. However, they currently account for only 3% of total international payments. The WTO report highlights five persistent trade-payment frictions that stablecoins may help address.

Developing and emerging economies could benefit from integrating stablecoins into international payment systems, but many countries with the greatest need have less developed regulatory regimes, making adoption harder. The key to future impact will depend on policy alignment rather than technical compatibility, Marchetti said.