- Russian finance ministry official calls for development of domestic stablecoin following Tether‘s freezing of $27 million linked to sanctioned exchange Garantex.
- US Department of Justice collaborated with German and Finnish authorities to disrupt Garantex operations, claiming the exchange processed over $96 billion in criminal proceeds.
- Stablecoin market has grown significantly, exceeding $200 billion in early 2025, with volumes reaching $27.6 trillion in 2024.
A Russian finance ministry official has called for the country to develop its own stablecoin following actions by US authorities and Tether that froze wallets linked to the sanctioned Russian exchange Garantex. Osman Kabaloev, deputy director of Russia‘s Finance Ministry’s financial policy department, suggested creating a domestic alternative to USDT, according to April 16 reports by Reuters and TASS.
"We do not impose restrictions on the use of stablecoins within the experimental legal regime. Recent developments have shown that this instrument can pose risks for us," Kabaloev told TASS. He added: "This leads us to consider the need to develop internal instruments akin to USDT, potentially pegged to other currencies."
The comments follow significant disruption to Garantex, which had to halt operations including withdrawals after Tether froze $27 million worth of USDT on March 6. This action coincided with the US Department of Justice collaborating with German and Finnish authorities to freeze domains associated with the exchange, which they claim processed over $96 billion in criminal proceeds since 2019.
The US Treasury’s Office of Foreign Assets Control initially sanctioned Garantex in April 2022 for alleged money laundering violations. A Swiss blockchain analytics firm has claimed that Garantex has potentially resurfaced under a different name after laundering millions in ruble-backed stablecoins.
Russia’s Expanding Crypto Initiatives
This stablecoin development proposal is not Russia’s only recent cryptocurrency initiative. On March 20, Evgeny Masharov, a Russian Civic Chamber member, proposed creating a government crypto fund that would include assets seized during criminal proceedings.
Simultaneously, other Russian officials have been working on legislation to recognize cryptocurrencies as property for criminal procedure purposes, indicating a broader governmental approach to digital assets despite international sanctions.
Global Stablecoin Growth
The stablecoin market has experienced significant expansion since mid-2023, with total market capitalization exceeding $200 billion in early 2025. A joint report from onchain analysis platforms Artemis and Dune revealed that active stablecoin wallets increased by more than 50% in one year.
2024 saw massive stablecoin adoption, particularly driven by increased bot usage. Total stablecoin transaction volumes reached $27.6 trillion, surpassing the combined volumes of VISA and Mastercard by 7.7%, demonstrating their growing importance in the global financial ecosystem despite regulatory challenges.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Bhutan explores green cryptocurrency mining with hydropower to boost GDP
- A16z Urges SEC to Overhaul Digital Asset Safeguarding for Advisers
- AI Startups Grab 58% of Global VC Funding in Q1 2025 as FOMO Surges
- China Sells Seized Crypto Through Offshore Firms Despite Trading Ban
- Base Token on Zora Crashes 92% After Reaching $13M Valuation
