Tiger Research: How Stablecoins Are Transforming Vietnam's Financial Landscape

A recent report by Tiger Research titled “Stablecoins as Vietnam's Parallel Financial System” sheds light on how stablecoins have emerged as an alternative financial ecosystem in Vietnam. Despite the lack of regulatory clarity, stablecoins are widely used for trading, remittances, and as a store of value, bypassing traditional banking systems and government oversight.

Stablecoin Market Growth Amid Regulatory Disconnect

Vietnam consistently ranks among the top countries for cryptocurrency adoption globally. However, the absence of a regulatory framework has constrained the industry’s growth. Despite these challenges, the Vietnamese stablecoin market has flourished, driven by retail users.

According to the report, key insights reveal the following:

1. Vietnamese users access stablecoins via unofficial channels such as Binance P2P services, OTC trading on Telegram, and direct peer-to-peer (P2P) wallet exchanges.

2. From 2020 to 2025, the price of USDT in Vietnam consistently carried a premium over the official VND/USD exchange rate, with an average premium of 3.35% in 2024.

This premium reflects the growing trust in stablecoins as a reliable financial tool, particularly for managing liquidity and hedging against market volatility.

Stablecoins Aligning with Vietnamese Financial Behavior

Trading and Liquidity Management

Vietnamese investors prefer holding funds in stablecoins like USDT rather than converting them back to VND after trading. This practice has transformed stablecoins into essential liquidity management tools.

Peer-to-Peer Transfers

Despite the legal prohibition of cryptocurrency payments, stablecoins are widely used for P2P transfers. Vietnam is among the top five countries globally for receiving remittances via stablecoins, with 7.8% of all remittances entering the country in USDT.

Stablecoins as a Safe-Haven Asset

Traditionally, Vietnamese households rely on gold and US dollars to hedge against inflation and currency volatility. However, stablecoins are increasingly viewed as digital alternatives, offering similar value preservation benefits.

Regional Comparison: Regulatory Efforts in Southeast Asia

In Vietnam, stablecoins have naturally grown outside the formal financial system and established themselves as an important pillar of 'shadow finance.' Investors widely use them not only as primary liquidity management tools but also for peer-to-peer payments and as stores of value.

While Vietnam has yet to implement concrete rules for stablecoins, neighboring Southeast Asian countries have already built regulatory frameworks that reflect real-world usage. These countries’ approaches — such as sandbox pilots, licensing regimes, and tax guidance — offer valuable insights for Vietnam as it considers formalizing its parallel crypto economy.

The Need for Policy Alignment

The report highlights that stablecoins have organically grown into a critical pillar of Vietnam’s shadow financial system. Investors use them for liquidity management, payments, and value storage. However, the lack of regulation poses risks to market transparency and stability.

Vietnam’s government has acknowledged the importance of the cryptocurrency industry and is preparing regulatory sandboxes. However, specific policies for stablecoins remain absent. As Prime Minister Pham Minh Chinh recently stated, “What is not prohibited by law should be considered allowed.” This sentiment offers a potential pathway for integrating stablecoins into Vietnam’s financial system.

Unlocking Vietnam’s Potential in the Digital Financial Era

Stablecoins have become indispensable in Vietnam’s financial landscape, serving as a parallel economy outside traditional banking systems. By learning from neighboring countries and tailoring regulations to its unique market realities, Vietnam has the potential to emerge as a leader in Southeast Asia’s digital financial ecosystem. Proactively addressing regulatory gaps while supporting innovation will not only enhance financial transparency but also strengthen Vietnam’s position in the global digital economy.