Stablecoins especially USDTs are filling in the gaps for cross boarder payments and doing so rapidly since the onset of the Iran war.

Luke Sully, CEO of trade finance-focused stablecoins issuer Haycen, believes that the current rise of geopolitical conflicts has lead to the mistrust of the normal banking. Alternatively, as a means of curbing this problem traders have dived into the safer crypto payment system.

Banks are worried that legitimate transactions will have indirect exposure to sanctioned Iranian entities. Rather than take the risk, some institutions are stepping back entirely. The result is reduced access to traditional rails in a sector that is already largely financed outside of traditional banking. This resulting to traders adopting the current safe and secure terms of payment. Stablecoins.

Trade Finance $2trillion economy!

Trade finance, a roughly $2 trillion market for international trade transactions, has been dominated by non-bank lenders. Also, private credit funds that finance the movement of commodities and goods globally.

Sully stated. “Everybody thinks they know about trade finance, but they don’t. It’s predominantly non-bank investment funds lending to borrowers around the world to move goods and services.”
These lenders provide critical liquidity, often earning annualized returns of around 15% enabling transactions globally. Whence relaying on banks for settlement and payment rails, relationships that are now under strain.

Read Also: Stablecoins Set to Replace Mastercard and Visa by 2035

Stablecoins, digital tokens pegged to fiat currencies, typically the U.S. dollar, are emerging as a key workaround. In particular, Tether’s USDT has seen growing adoption among commodity traders and counterparties operating in emerging markets.

These cryptocurrencies have rapidly evolved from a niche crypto trading tool into one of the fastest-growing segments of global finance, with total market capitalization surpassing $300 billion in 2025 after roughly 50% annual growth.

Transaction volumes have surged even faster, exceeding $4 trillion in 2025 and now accounting for around 30% of all onchain activity, underscoring their growing role as a medium for cross-border payments and dollar access in emerging markets.