Fragmented Regulations Hinder Stablecoin Adoption in Global Trade, Says WTO Director
Juan Marchetti, director of the trade in services and investment division at the World Trade Organization (WTO), highlighted that fragmented regulatory regimes are limiting the adoption of stablecoins in international trade. Speaking at a Geneva event launching the WTO’s study on stablecoins in world trade, Marchetti emphasized that the main barrier is not technological but regulatory. According to a Financial Stability Board report from October 2025, only 39% of the 28 surveyed jurisdictions have finalized stablecoin regulations. Although stablecoin payments have grown 35-fold between 2020 and mid-2024, they currently account for just 3% of total international payments due to regulatory fragmentation.
Regulatory Barriers Impacting International Trade
Juan Marchetti emphasized that the primary obstacle to stablecoin usage in international payments is not technological but regulatory fragmentation. An October 2025 report by the Financial Stability Board revealed that only 11 out of 28 surveyed jurisdictions have finalized their stablecoin regulatory frameworks. Consequently, despite their potential advantages, stablecoins currently represent only about 3% of international payments.
Advantages of Stablecoins and Trade Finance Friction Points
The WTO identifies five main friction points in trade finance that stablecoins could alleviate: high costs, slow transaction speeds, limited access, lack of transparency, and foreign exchange constraints. The analysis shows that stablecoin payments in cross-border transactions increased 35-fold from 2020 to mid-2024, highlighting growing interest in the technology.
Implications for Developing Economies
Developing countries stand to benefit most from adopting stablecoins due to reduced remittance fees. However, these countries typically have underdeveloped regulatory frameworks for stablecoins, hindering rapid adoption. Marchetti stressed the need for enhanced regulatory development to help these nations leverage new payment mechanisms.
Initiatives by Major Payment Processors
Leading global payment processors like Mastercard and Western Union are already piloting stablecoin projects to improve cross-border payments. In August, Mastercard partnered with Borderless to pilot a project enhancing trust in stablecoin transfers through its Crypto Credential framework. Western Union teamed up with infrastructure provider Rain to launch a digital wallet and Visa-branded card enabling users to hold and spend US dollar-backed stablecoins in 37 markets, with plans to expand to over 60 markets by year-end.
Why it matters
This news highlights the crucial role of regulatory frameworks in the development of financial technologies, particularly in cross-border payments. Despite the technological maturity of stablecoins and their potential to reduce transaction costs and accelerate payments, fragmented regulation is a significant barrier to widespread adoption. This is especially relevant for developing economies that stand to gain substantially from lower remittance fees. The initiatives from major market players indicate growing interest in stablecoin integration, but achieving successful adoption requires more unified and transparent regulatory standards.
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