WTO identifies key barrier to wider stablecoin adoption

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WTO identifies key barrier

Who could benefit most from wider stablecoin adoption

Developing economies could gain the most from stablecoins, particularly where the cost of international transfers remains high. However, these are often the same countries where regulatory frameworks are least developed.

Marchetti believes that further stablecoin adoption will depend primarily on greater regulatory convergence between countries, payment system interoperability and the development of financial infrastructure.

Major payment companies are already testing such solutions. In August, Mastercard launched a pilot project with Borderless for cross-border stablecoin transfers. The company had earlier announced plans to use USDC, PYUSD and RLUSD for settlement, including transactions on weekends and holidays.

Western Union also partnered with Rain in August to launch a digital wallet and Visa card that allow users to hold and spend a U.S. dollar-backed stablecoin. The service launched in 37 markets and is expected to expand to more than 60 by the end of the year.

The main obstacle remains the same

Despite growing business interest, there are still no unified international rules for stablecoins. Some countries have already introduced comprehensive regulatory frameworks, while others are only developing requirements or restricting the use of such assets.

The WTO believes that greater coordination between national regulatory regimes will be a key condition for the mass adoption of stablecoins in global trade. Without it, the technology may continue to develop rapidly, but its share of international payments is likely to remain limited.

Who controls the stablecoin market

The stablecoin market is still dominated by two players. Tether’s USDT accounts for about 59% of the market, with a capitalization of roughly $183.5 billion, while Circle’s USDC holds another 24%, with a market cap of about $74.4 billion. Together, they account for more than 80% of the market, while their closest rivals trail by a wide margin.

World Liberty Financial, a project linked to Donald Trump’s family, also tried to break into this duopoly with its USD1 stablecoin. So far, however, it has failed to seriously challenge the leaders: USD1 has a market capitalization of around $4.3 billion, giving it only about 1.4% of the market and sixth place among the largest stablecoins. Even a high-profile political brand has not yet been enough to overcome the advantage of USDT and USDC, which are already deeply integrated into exchanges, payments and international settlements.

As a reminder, global banks plan to launch a U.S. dollar stablecoin in 2027.

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