Russia is ramping up efforts to develop alternative payment systems with the launch of the new ruble-pegged stablecoin A7A5, which has processed over $9.3 billion in transactions in a short time.
Overview of Stablecoin A7A5
Launched in Kyrgyzstan in February 2025, the stablecoin A7A5 is marketed as the first digital token fully backed by the Russian ruble. The project is presented as independent and transparent, but its implications for international finance raise concerns.
Links to Sanctioned Entities
A7A5 is linked to blacklisted entities, including Promsvyazbank, which is under U.S. and EU sanctions. The token is also associated with A7, a company belonging to Ilan Șor, convicted of embezzlement in Moldova. These connections underline the potential objectives of the stablecoin in evading Western sanctions.
Reactions and Plans of Russian Authorities
The A7A5 team denies any connections to illicit financial activities, claiming the token was created to meet the demand for stablecoins pegged to the ruble. CEO Leonid Shumakov stated that Kyrgyzstan was chosen for its 'friendly jurisdiction' status to help Russian users cope with increasing international pressure. Russian officials have also advocated for local stablecoin alternatives amidst sanctions.
The A7A5 stablecoin is rapidly gaining traction, providing Russian enterprises with a means to circumvent financial restrictions, but its associations with sanctioned entities raise significant concerns on the international stage.
