Stablecoins' Global Payment Share at 3% Amid Regulatory Fragmentation, WTO Says

Stablecoins have the potential to reduce cross-border payment costs and processing times, but their share in international settlements remains at just 3% due to fragmented national regulatory systems, according to the World Trade Organization (WTO). On July 14, WTO Services, Trade and Investment Director Juan Marchetti stated during a Geneva event presenting a report on 'Stablecoins and Global Trade' that "the constraints are not technological but rather related to regulation and inadequate regulatory frameworks." He noted that stablecoins currently account for approximately 3% of total international payments. The WTO assessed that stablecoins could alleviate high cross-border payment costs, slow processing speeds, limited accessibility, lack of transparency, and foreign exchange restrictions. Actual cross-border stablecoin payment volumes have grown 35-fold from 2020 to mid-2024. Developing countries bearing heavy remittance costs stand to benefit significantly, though their regulatory frameworks remain relatively weak. Regulatory gaps persist: Among 28 jurisdictions surveyed by the Financial Stability Board (FSB) last year, only 11 had finalized global stablecoin regulatory frameworks, representing just 39%. The FSB warned that differing national systems could lead to regulatory arbitrage and complicate cross-border supervision. Private payment providers are already expanding their use. Mastercard announced in June plans to expand on-chain settlement using regulated stablecoins like USDC and RLUSD for same-day, weekend, and holiday settlements. Western Union recently launched a stablecoin card with Rain, enabling dollar-linked stablecoin holdings, transfers, and payments across 37 markets, with plans to expand to over 60 markets by year-end.