Russian commodity companies use stablecoins for transactions with Chinese counterparties

Russian commodity companies, having difficulty conducting financial transactions with their Chinese partners, have turned to stable coins.

According to a recent Bloomberg story, in response to international restrictions and stricter compliance measures, these companies have turned to cryptocurrencies, including the stablecoin Tether, to facilitate cross-border transactions with their Chinese customers and suppliers.

The report states that executives at two major metals producers have confirmed that they use stablecoins for transactions. Some payments are made through Hong Kong, which circumvents the difficulties that Russian companies face when receiving payment for their goods, purchasing equipment and raw materials.