WTO Highlights Regulatory Fragmentation Limits on Stablecoin's International Financial Applications

The Director of the Trade in Services and Investment Division at the World Trade Organization (WTO), Juan Marchetti, stated in Geneva during the release of a study on the role of stablecoins in global trade that the main factors limiting the adoption of stablecoins in international trade are regulatory issues and the insufficient development of regulatory frameworks. He cited a report from the Financial Stability Board in October 2025, which indicated that out of 28 surveyed jurisdictions, only 11, or 39%, have finalized their stablecoin regulatory frameworks. Marchetti pointed out that stablecoins could alleviate major friction points in trade financing, but due to the fragmented regulatory systems, they currently account for only 3% of total international payments. The WTO report identified five friction points that stablecoins could improve: high costs, low speed, limited access, lack of transparency, and foreign exchange restrictions. Additionally, the report showed that from 2020 to mid-2024, stablecoin payments in cross-border transactions grew by 35 times.

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