- A7A5 is a Ruble-backed stablecoin linked to a sanctions evasion operation by a company owned by a Russian state bank and a Moldovan sanctioned individual.
- Daily transfers using A7A5 exceed $1 billion, with total transfer volumes reaching $41.2 billion.
- The market capitalization of A7A5 has tripled in under two weeks, now standing at $521 million.
- A7A5 exchange volumes have surpassed $8.5 billion, supported by over $1.3 billion in USDT liquidity added by its issuer.
- The expanding reach and liquidity of A7A5 create challenges for international sanctions by enabling cross-border transfers outside the traditional banking system.
A7A5 is a Ruble-backed stablecoin launched in January 2025 in Kyrgyzstan. It operates on the Tron and Ethereum blockchains and is intended to aid Russian businesses affected by western sanctions in making international payments.
The stablecoin is issued by Old Vector LLC, with backing deposits held at Promsvyazbank (PSB), a Russian state-owned bank that serves the defense sector. A7 LLC, which owns the stablecoin project, is 51% owned by Ilan Shor, a Moldovan fugitive sanctioned for election interference activities supporting Russia, while PSB holds the other major stake.
Since its launch, A7A5 has seen rapid growth. Over $1 billion in transfers occur daily through A7A5, with total transfers to date amounting to $41.2 billion. The stablecoin supply has surged by more than 240% in the past two weeks, resulting in a market capitalization of $521 million.
The issuer pays holders half of the interest earned on the Ruble deposits backing A7A5, distributed as additional tokens. To date, about $4 million has been paid out in such interest.
The trading of A7A5 takes place on Kyrgyzstan-based exchanges Meer and Grinex, the UAE-based peer-to-peer platform Bitpapa, and decentralized exchanges like Curve and Uniswap. A7A5 has accumulated over $8.5 billion in exchange volumes, predominantly traded against Rubles and Tether’s US dollar stablecoin (USDT).
The issuer has injected more than $1.3 billion in USDT liquidity into its own decentralized exchange, enabling daily USDT/A7A5 trading volumes to reach approximately $150 million.
A7A5 emerged as an alternative to USDT following the enforced shutdown of Russia-based exchange Garantex, where USDT wallets were frozen by the US Secret Service. This freeze made USDT less reliable for Russian users due to its centralized control.
A7A5 offers a Ruble-denominated option that is not directly exposed to such sanctions risk, facilitating cross-border payments while bypassing traditional banking systems.
Further expansion is planned, including listings on additional exchanges and enabling purchases with PSB bank cards. This will provide access to PSB’s 4.5 million customers, increasing A7A5’s reach and raising its profile as a tool for evading international sanctions.
For more detailed information, see the report by the Centre for Information Resilience.
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