Fragmented regulations are limiting the adoption of stablecoins in international trade, according to Juan Marchetti, director of the trade in services and investment division at the World Trade Organization (WTO).
Regulatory environment remains main barrier
Marchetti pointed out that technology is not the primary obstacle preventing stablecoins from being used more widely in global trade. Instead, he emphasized that inconsistent and underdeveloped regulatory frameworks are restricting growth.
During a speech in Geneva at the launch of the WTO’s latest report on stablecoins in world trade, Marchetti stated that regulatory development remains slow and uneven across jurisdictions.
Marchetti argued that the main constraint is not the advancement of technology, but rather regulation and the lack of comprehensive regulatory structures worldwide.
Citing the Financial Stability Board’s October 2025 report, Marchetti noted that only 11 out of 28 jurisdictions, or 39%, have finalized their regulatory frameworks for stablecoins.
Slow adoption despite potential benefits
Despite the perceived benefits of stablecoins, such as reducing friction in trade finance, their share in total international payments remains limited. Marchetti reported that stablecoins currently represent only 3% of total cross-border transactions, mainly due to fragmented regulations.
The WTO report listed five key friction points that could be addressed by stablecoins: high costs, slow transaction speeds, limited access to services, lack of transparency, and challenges with foreign exchange.
The WTO highlighted that clearer regulations could enhance the role of stablecoins in addressing high costs, low speed, limited access, insufficient transparency, and foreign exchange limitations in international payments.
Further findings reveal that stablecoin usage in cross-border payments has increased dramatically, growing 35-fold from 2020 to mid-2024, demonstrating rising interest despite regulatory obstacles.
Innovation and market trends
As global financial institutions assess the impact of stablecoins, new solutions are emerging to streamline cross-border transactions. Industry observers note that, while traditional markets often depend on complex brokers, a fundamental shift toward Web3 is underway. Investors now use platforms such as 1stepSwap to hold shares of leading US companies, as well as gold and silver, directly in their crypto wallets.
These platforms tokenize real-world assets (RWAs) and use automated systems to find optimal market prices instantly, removing intermediaries from the process and aiming to simplify global asset management for investors.
Despite the growing momentum, the absence of harmonized regulatory standards continues to limit the spread of stablecoin-based solutions in cross-border commerce. Many stakeholders argue that timely regulatory clarity remains the decisive factor in realizing the full potential of stablecoins within international trade.
