USDT has emerged as a central settlement tool in Venezuela’s oil commerce under U.S. sanctions, while also becoming a widely used financial lifeline for ordinary citizens facing inflation and currency instability, WSJ reports.
According to the report, Venezuela’s state-run oil company PdVSA began leaning on stablecoin-based payments after U.S. restrictions intensified around 2020, making traditional banking channels harder to use. Instead of relying on wire transfers, some oil-related transactions reportedly shifted toward settlement in USDT, reducing exposure to blocked financial rails.
Industry experts cited by WSJ estimate that as much as 80% of Venezuela’s oil export revenue may now be received in USDT, reflecting how crypto-dollar liquidity has become embedded in the country’s external trade flows.
Tether steps up compliance cooperation
WSJ also notes that Tether has expanded cooperation with U.S. authorities and has taken enforcement actions tied to Venezuela-linked activity. The stablecoin issuer has reportedly frozen multiple wallets connected to entities involved in Venezuelan oil transactions, and has signaled willingness to support efforts aimed at tracking flows linked to the Maduro government. On Jan. 11, Tether froze an additional $182 million across five wallets on the network.
Stablecoin adoption grows beyond state-linked trade
Beyond state-linked payments, USDT has also gained strong traction among Venezuelans seeking protection from local currency depreciation. With the bolívar losing significant value over the past decade, USDT’s dollar peg has made it appealing as a store of value for smaller savings.
The stablecoin has also become a practical tool for cross-border transfers, particularly for families relying on financial support from relatives abroad. Over time, USDT use reportedly expanded from savings into day-to-day transactions, increasing its role in household finances across the country.