The ongoing geopolitical conflict is reshaping the infrastructure of global trade finance, leading to some commodity traders being excluded from traditional banking systems and turning towards stablecoins as an alternative. Luke Sully, CEO of Haycen—a stablecoin issuer focused on trade finance—explained that heightened compliance concerns among Western banks due to the Iran war are causing a new wave of “debanking” within commodity markets.
Sully noted in his conversation with CoinDesk that “banks have become more cautious about certain commodity flows post-war.” He revealed interactions with traders currently facing debanking. The main issue is counterparty risk, as banks fear indirect connections to sanctioned Iranian entities through transactions involving firms in regional hubs like Oman, leading some institutions to withdraw entirely.
This development results in decreased access to conventional financial channels for a sector largely financed outside traditional banking. Trade finance, a $2 trillion market facilitating international trade transactions, is increasingly controlled by non-bank lenders such as private credit funds that support global commodity movements. These entities provide essential liquidity and yield annualized returns of about 15%, backing operations like shipping helium from Qatar to South Korea or manganese from South Africa to Indonesia.
However, these lenders depend on banks for settlement services and payment channels, which are now under pressure. Stablecoins—digital tokens anchored to fiat currencies like the U.S. dollar—are emerging as a vital alternative. Tether’s USDT, in particular, has seen increased use among commodity traders and counterparties in emerging markets.
Stablecoins have swiftly transitioned from niche crypto trading tools to one of the fastest-growing sectors in global finance, with market capitalization exceeding $300 billion in 2025 following approximately 50% annual growth. Their transaction volumes have surged even more rapidly, reaching over $4 trillion in 2025 and accounting for about 30% of all onchain activity, highlighting their growing role in cross-border payments and providing dollar access in emerging markets.
Initially used primarily within crypto markets, stablecoins are now increasingly adopted for real-world applications like remittances and trade settlement due to their speed, global liquidity, and ability to bypass traditional banking systems. Tether’s USDT is currently leading this trend. “Tether is capturing a lot of the payment flows,” Sully remarked. “For one-time payments into emerging markets, USDT facilitates these transactions.”
Their appeal lies in deep global liquidity and widespread acceptance, as Sully pointed out: “The extensive global USDT liquidity means people are comfortable sending or receiving it for payments because it can be exchanged for dollars somewhere else.” This increasing familiarity is also transforming perceptions.
Sully views this trend as a temporary fix rather than a long-term solution. He highlighted extreme geopolitical signals, such as bitcoin being used for “safe passage” through the Strait of Hormuz, a crucial route for global oil shipments. This indicates that trade finance is increasingly managed by non-bank actors and methods.
Haycen aims to capitalize on this shift, issuing USDhn—a U.S. dollar-backed stablecoin tailored for trade finance. Sully stated, “We aspire to be the liquidity and settlement layer for non-bank global trade,” currently collaborating with industry participants worldwide. The goal is to simplify a fragmented system. Haycen enables users to deposit funds, transact using its stablecoin, earn interest (regulatory eligibility permitting), and bypass correspondent banking delays.
Unlike other stablecoin issuers focused on crypto trading or retail payments, Haycen targets an institutional niche. “Most stablecoins are payment or crypto trading businesses,” Sully observed. “We address a different challenge.” This involves efficiently moving money within a fragmented and increasingly risk-averse global trade system—a challenge likely to intensify as geopolitical tensions continue.
Sully noted that banks’ withdrawal from certain markets might accelerate crypto adoption faster than the industry anticipated. Despite market growth, S&P Global reports banks are proceeding cautiously with stablecoins.