Russian crypto bypasses sanctions: how A7A5 crossed 100 billion dollars

Since the invasion of Ukraine in 2022, Western governments have intensified their sanctions against Russia, freezing hundreds of billions of dollars in Russian assets. Faced with these financial restrictions, Russian crypto has gradually established itself as a tool to circumvent restrictive measures. The stablecoin A7A5, pegged to the Russian ruble, perfectly illustrates this dynamic: in less than a year, transactions have exceeded $100 billion, revealing the geopolitical stakes surrounding cryptocurrencies.

A7A5: the bridge between the ruble and the global ecosystem

According to Elliptic’s report from January 22, A7A5 has become a true bridge between the Russian market and international markets. Issued simultaneously on the public blockchains Ethereum and Tron, this Russian stablecoin has generated 250,000 transfers across more than 41,300 different wallets. The data reveals a remarkable concentration: 35,500 accounts now hold A7A5 tokens, compared to only 14,000 in July 2025.

Total trading volumes amount to $17.3 billion, with two dominant pairs structuring the entire demand. The A7A5/ruble pair accounts for $11.2 billion, while the A7A5/USDT (Tether’s dollar stablecoin) pair represents $6.1 billion. This concentration shows that A7A5 mainly functions as an intermediary: converting rubles into USDT allows Russian users to access international cryptocurrency markets without going through traditional banking channels, which are subject to Western controls.

Sanctions slowing down Russian crypto activity

However, the momentum of the Russian stablecoin has been broken under the weight of coercive measures. Since mid-2025, US, UK, and European sanctions targeting cryptographic infrastructure have produced their first measurable effects. The EU has frozen about $250 billion in Russian assets, while the UK has immobilized nearly $35 billion.

The impact on A7A5 is undeniable. New issuances have stopped abruptly after July 2025: no new tokens have been created since that date. Currently, there are 42.5 billion A7A5 in circulation, valuing the entire at only $547 million. But the most revealing indicator remains the daily transaction volume, which has collapsed: trading has fallen from over $1.5 billion per day in 2025 to about $500 million currently, a 67% decrease in just a few months.

Tether, the issuer of USDT, openly collaborates with authorities. The stablecoin giant freezes USDT accounts upon official legal request. Elliptic confirms this dynamic: in March 2025, the analytics firm worked alongside Tether and the US Secret Service to block USDT assets held by Garantex, the sanctioned Russian exchange platform. This cooperation shows that centralized stablecoins offer little resistance to government measures.

An uncertain future for the stablecoin pegged to the ruble

Although A7A5 persists as a tool for Russian cross-border trade, its isolation is increasing. Unlike centralized stablecoins like USDT, where a third party can freeze accounts, A7A5 operates in a decentralized manner: only its issuer has the ability to blacklist addresses. This architecture theoretically offers more resistance, but remains insufficient in the face of geopolitical pressure.

Russian crypto continues to represent a significant market with around 20 million users and $376 billion in cryptocurrencies received over twelve months. Nevertheless, A7A5 is gradually diverging from the rest of the global crypto ecosystem, which is fragmented and increasingly regulated. The future of this stablecoin will depend on the ability of Russian developers to innovate in the face of growing restrictions, and on the political will of Western authorities to maintain or relax controls.