On September 14 local time, the World Trade Organization, or WTO, Secretariat released a report analyzing the potential uses and challenges of stablecoins in international trade at the first World Trade and Technology Day event. The report explained that cross-border payments passing through multiple banks and foreign exchange stages are slow and expensive, with these burdens falling particularly heavily on small and medium-sized enterprises and businesses in developing countries. Stablecoins are privately issued digital assets designed to track the value of a reference asset such as the U.S. dollar. Citing an early-2025 estimate published by McKinsey, the report said stablecoins accounted for about 3% of global cross-border payment value and were not being used at scale in trade finance beyond some pilot projects. The report found that sending funds through stablecoins without time-zone constraints could shorten processing times in some payment corridors and reduce intermediary costs. However, it noted that actual costs must include not only blockchain transaction fees but also the cost of acquiring stablecoins, regulatory compliance costs, and foreign exchange costs when conversion into local currency is required. A study cited by the report found that the total cost of some international remittance corridors using a single stablecoin ranged from 0.3% to nearly 9% of the amount sent, with costs arising mainly at the stages where fiat currency and stablecoins are exchanged. Know-your-customer, anti-money laundering, and sanctions screening procedures also remain necessary.
The report analyzed that because stablecoins do not themselves provide loans, guarantees, or insurance, their benefits may currently be more direct for cross-border payments for digital services than for goods trade, which requires credit provision. It added, however, that assessments of their role in trade finance could change as tokenization, legal frameworks, and market infrastructure develop. It also said that while stablecoins could improve access to international payments for businesses in developing countries, widespread use of stablecoins based on foreign currencies could displace domestic currencies, weaken the effectiveness of monetary policy, and increase dependence on foreign private issuers. The report concluded that broader use would require clear redemption rights and reserve asset management standards, as well as links among banking systems, corporate treasury management, and electronic trade documents. The report was prepared under the responsibility of the WTO Secretariat and does not necessarily reflect the positions of WTO members, nor is it intended to provide an authoritative or legal interpretation of WTO agreements.