Stablecoin A7A5 backed by the Russian Ruble reaches $100 billion in volume amid sanctions crackdown

not_your_keys · 2026-01-23T01:33:04+00:00

A7A5, a stablecoin backed by the Russian ruble, has processed over $100 billion in transactions since its launch in 2025, allowing Russian businesses to circumvent western sanctions. However, it now faces liquidity issues due to global regulatory pressures.

not_your_keys

2026-01-23 01:33:04

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Source: Yellow Original Title: Stablecoin A7A5 Backed by the Russian Ruble Reaches $100 Billion in Volume Amid Sanctions Crackdown

Original Link: A7A5, a stablecoin pegged to the ruble used to facilitate Russian cross-border trade, has processed over $100 billion in total transactions during its first year of operation.

Launched in January 2025, the digital asset serves as a “safe haven” for Russian companies to avoid Western sanctions by connecting the local currency with global liquidity pools.

Despite reaching this milestone, the protocol now faces liquidity shortages as international regulators and major DeFi platforms move to isolate the token from the overall crypto economy.

The issuer, Old Vector LLC, based in Kyrgyzstan, is allegedly controlled by the sanctioned Russian state bank Promsvyazbank and the fugitive Moldovan financier Ilan Shor.

A Bridge to USDT

A7A5 primarily operates on the Ethereum and TRON blockchains, allowing users to move value without the immediate risk of wallet freezing associated with dollar-backed stablecoins like USDT.

Exchange data shows that $17.3 billion in trading volume has been concentrated on the Kyrgyzstan-based exchange Grinex, where users frequently swap ruble-backed tokens for USDT.

The strategy aims to mitigate the “redemption risk” exposed in early 2025, when U.S. authorities seized USDT holdings from the Russian exchange Garantex.

By maintaining internal accounts linked to the ruble, Russian companies conduct trade within a closed circuit before converting to global assets only when necessary for final settlement.

Sanctions Cause Stagnation of the “Safe Haven”

While the number of transactions surged after Promsvyazbank card integrations in late 2025

DEFI-3.39%

TOKEN-0.89%

ETH-0.68%

TRX-0.66%

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