Russia’s Ruble-Backed A7A5 Stablecoin Moves $6B Despite U.S. Crackdown

Russia’s latest blockchain experiment is making headlines. 

The ruble-backed A7A5 stablecoin has reportedly moved over $6 billion in cross-border transactions since August – even after U.S. sanctions hit several of its operators. The project, which now holds official recognition under Russian law, shows how Moscow is using crypto to keep trade flowing despite Western restrictions.

Russia Gives A7A5 a Legal Green Light

A7A5 is the first stablecoin officially recognized as a Digital Financial Asset (DFA) in Russia. This means Russian companies can now use it for international trade settlements. The token is backed one-to-one by rubles held at Promsvyazbank, a state-owned lender already under U.S. and U.K. sanctions.

Minted earlier this year in Kyrgyzstan by a company called Old Vector, A7A5 runs on Tron and Ethereum blockchains. Its market cap already exceeds ₽41 billion (around $500 million).

Project head Leonid Shumakov called it “a convenient and effective tool for cross-border settlements using blockchain,” saying it could bring “positive effects for individuals, companies, and the economy as a whole.”

Re-Minting After Sanctions

The stablecoin’s rapid growth hasn’t come without controversy. 

In August, U.S. regulators sanctioned the Grinex exchange, saying it was a successor to the blacklisted Garantex, known for handling illicit transactions.

Just after the sanctions, A7A5’s operators destroyed more than 80% of its supply linked to Grinex wallets and reissued the same value to new addresses using a function called “destroyBlackFunds.” Blockchain data shows that this move effectively erased transaction history tied to sanctioned wallets.

Also Read: Russian Firms Move Billions Using Crypto to Bypass Sanctions: Report

The new address, labeled “TNpJj,” has since processed over $6.1 billion worth of A7A5 transactions, according to the Financial Times. 

The coin’s activity pattern still matches that of older wallets, operating mainly during Moscow business hours.

A Sanctioned Coin on a Global Stage

Despite the sanctions, A7A5 even managed to appear as a sponsor at Singapore’s Token2049 conference. The event’s Hong Kong organizers were not bound by Singapore’s sanctions, allowing A7A5 to initially participate. 

However, after media reports, all references to the stablecoin were quickly removed from the official site.

Russia’s Bigger Crypto Push

Russia’s Central Bank is planning a nationwide crypto audit in 2026 to study digital holdings, derivatives, and cross-border activity. The move signals that Moscow wants to build a new framework around digital assets to support trade under pressure.

The A7A5 story is a clear sign of how blockchain is becoming part of Russia’s financial strategy, giving the country new ways to move money when traditional systems are closed.