The Russian ruble-pegged stablecoin issuer sanctioned by the U.S. Department of the Treasury, A7A5, saw its circulating supply increase by nearly $90 billion last year, surpassing Tether ($49 billion) and Circle ($31 billion), with total transaction volume exceeding $100 billion. Its executives insisted at the Hong Kong Consensus conference that they are “completely compliant,” but concerns over sanctions evasion continue to rise among Western countries.
(Background: The double-edged sword of stablecoins: USDT is a lifeline in Venezuela and Iran, but also a tool for sanctions circumvention)
(Additional context: What “lethal details” are hidden in the new U.S. stablecoin regulations?)
Table of Contents
- $90 Billion Growth, Surpassing USDT and USDC
- The Gray Area Under Sanctions
- Expansion Ambitions and Regulatory Challenges
- The Double-Edged Sword of Stablecoins
A ruble-pegged stablecoin issued by entities sanctioned by the U.S. is rapidly reshaping the global stablecoin landscape. Oleg Ogienko, Director of Regulatory and International Affairs at A7A5, emphasized in an interview with CoinDesk at the Hong Kong Consensus that: “We fully comply with Kyrgyzstan’s regulations; we do not do anything illegal.”
$90 Billion Growth, Surpassing USDT and USDC
Last year, A7A5 added approximately $90 billion to its circulating supply, surpassing the stablecoin giants Tether’s USDT ($49 billion) and Circle’s USDC ($31 billion). According to blockchain analytics firm Elliptic, A7A5’s total transaction volume has exceeded $100 billion—less than a year after its launch in January 2025.
Ogienko stated that A7A5 has implemented KYC (Know Your Customer) procedures and AML (Anti-Money Laundering) mechanisms, following the principles of the Financial Action Task Force (FATF). The company’s current goal is to handle over 20% of Russia’s trade settlements.
The Gray Area Under Sanctions
However, the entities behind A7A5—Old Vector LLC and A7 LLC—as well as its reserve bank, Promsvyazbank (PSB), have all been sanctioned by the U.S. Department of the Treasury. These restrictions prevent them from interacting with the global financial system based on U.S. dollars.
This is the backdrop of A7A5’s rise—since the outbreak of the Russia-Ukraine war in 2022, Western countries have removed Russia from the SWIFT system, severely limiting traditional cross-border payment channels, forcing Moscow to seek alternatives. Stablecoins have become a key tool for bypassing sanctions and conducting international trade.
Currently, A7A5 mainly serves enterprises engaged in trade with Russian partners in Asia, Africa, and South America. Despite only about $50,000 worth of USDT available in its DeFi liquidity pools, its OTC and institutional trading volumes are evidently much higher than on-chain data suggests.
Expansion Ambitions and Regulatory Challenges
Ogienko revealed that A7A5 is actively negotiating partnerships with blockchain platforms and exchanges. It is already deployed on Tron and Ethereum and is exploring additional blockchain networks.
Ironically, A7A5 currently cannot operate within Russia because domestic stablecoin regulations have yet to be enacted. This means the stablecoin, designed to serve Russian trade, can only operate overseas for now.
According to DL News, A7A5’s rapid growth has driven a roughly 400% surge in crypto activities related to sanctions evasion, drawing significant international attention.
The Double-Edged Sword of Stablecoins
A7A5’s rise highlights the dual nature of stablecoins as financial tools. On one hand, they provide sanctioned countries’ enterprises with a means to conduct international trade; on the other, they can be used to evade sanctions, undermining Western economic pressure.
As the U.S. advances new stablecoin regulations (the GENIUS Act) and global oversight tightens, stablecoins growing in the cracks of sanctions like A7A5 will face increasing compliance pressures. For investors and market participants, this geopolitical game in the stablecoin space warrants close attention.
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