Fragmented Regulations Limit Stablecoin Adoption in International Finance: WTO Ecosystem
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Written by:
- Zoltan Vardai, staff writer
- Reviewed by: Robert Lakin, staff editor
Fragmented regulations limit stablecoin adoption in international trade, according to Juan Marchetti, director of the trade in services and investment division at the World Trade Organization (WTO).
"The constraint is not technology. It is actually regulation and the lack of development of regulatory frameworks," said Marchetti during a speech on Monday in Geneva, at the launch of WTO’s study on stablecoins in world trade.
He referenced an October 2025 report from the Financial Stability Board, which found that only 39%, or 11 out of 28 surveyed jurisdictions, have finalized their stablecoin regulatory frameworks.
Marchetti noted that while stablecoins may improve friction points in trade finance, they currently account for just 3% of total international payments due to these fragmented regulatory regimes.
The WTO’s report identified five main friction points that stablecoins could potentially ease:
- High costs
- Low speed
- Limited access
- Insufficient transparency
- Foreign exchange limitations
Stablecoin payments in cross-border transactions grew 35-fold between 2020 and mid-2024.
Developing economies stand to gain the most from stablecoin adoption, as they can reduce remittance fees. However, these countries also have the least developed regulatory regimes to support widespread adoption, according to Marchetti.
Global payment processors are increasingly exploring stablecoins to improve cross-border payments. In August:
- Mastercard partnered with Borderless to pilot trust in cross-border stablecoin transfers.
- Western Union launched a digital wallet and Visa-branded card supporting US dollar-backed stablecoins in 37 markets, with plans to expand to over 60 by year-end.