Russia’s efforts to build alternative payment systems outside Western financial rails may be gaining traction through a new ruble-pegged crypto asset.
Per a June 25 report by the Financial Times, a stablecoin with ties to Russia has quietly processed over $9.3 billion in transactions just four months after its launch.
Called A7A5, the stablecoin launched in Kyrgyzstan in February 2025 and is marketed as the first digital token fully backed by the Russian ruble.
The token is presented as an independent and transparent project, but its ties to sanctioned entities suggest it may be part of broader efforts to bypass Western sanctions and enable cross-border payments for Russian businesses restricted by the U.S., EU, and UK.
Ties to Garantex, Grinex, and Russia’s sanctions workaround
A7A5 has been linked to blacklisted entities, including Promsvyazbank, a Russian bank under U.S. and EU restrictions, and A7, a company tied to controversial businessman Ilan Șor, who is convicted of embezzling $1 billion in Moldova.
The token’s launch came shortly after U.S. authorities shut down Garantex, a major Russian crypto exchange accused of facilitating over $60 billion in illicit transactions. Around the same time, a new exchange called Grinex was launched in Kyrgyzstan, one that now serves as the main trading venue for A7A5.
Before Garantex was taken down, significant volumes of USDT were reportedly moved from Garantex wallets into A7A5, and later onto Grinex. Blockchain analytics firms Elliptic and Global Ledger suggest Grinex may be a successor platform, though Grinex denies any direct connection.
Grinex is said to handle trades exclusively in A7A5, Russian rubles, and USDT. Trading activity reportedly spikes during Moscow business hours, hinting at a concentrated user base tied to Russian businesses.
Researchers at the Centre for Information Resilience also noted that A7A5 may be part of Russia’s efforts to spread political influence overseas, and found online connections between the token and websites used in information campaigns in Moldova.
Despite the concerns, A7A5’s team denies links to illicit payment activity and claims the token was built to serve the growing demand for stablecoins pegged to Russia’s local fiat. Per the FT, CEO Leonid Shumakov stated that Kyrgyzstan was chosen for its “friendly jurisdiction” status, and to help Russian users cope with increasing international pressure.
The remarks echo the broader push by policymakers across the region to develop alternative payment methods. Back in April, Russian officials advocated for local stablecoin alternatives, particularly after U.S. authorities froze $23 million worth of USDT on Garantex as part of broader international crackdown.
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