Transfers with Rouble-Backed Crypto Coin Surpass $40 Billion Following July Surge, Researchers Report
By Alexander Marrow and Elizabeth Howcroft | July 28, 2025
LONDON/PARIS — A rouble-backed stablecoin designed to potentially help Russia bypass Western payment restrictions has experienced a sharp increase in transaction volumes, with the total funds transferred through the cryptocurrency exceeding $40 billion, according to blockchain research firm Elliptic.
Since the onset of Russia’s full-scale invasion of Ukraine in February 2022, Moscow has faced extensive Western sanctions that severely curtailed its access to global financial systems. Notably, key Russian banks were excluded from SWIFT, the global financial messaging network, complicating cross-border trade and payment processing. In response, Russian entities have sought alternative channels to facilitate international transactions, including stablecoins pegged to the rouble.
Launch of A7A5 Stablecoin
In January, heavily sanctioned Russian defense-sector lender Promsvyazbank, along with payments company A7, introduced a new Kyrgyzstan-based stablecoin called A7A5. The project was promoted as a novel instrument to support foreign trade and enable cross-border payments outside traditional banking systems.
Elliptic highlighted A7A5’s rising efficacy in circumventing sanctions by enabling Russian businesses and individuals to conduct transactions that would otherwise be blocked by conventional networks. The firm’s report pointed to a notable spike in daily transfers, now exceeding $1 billion, and an aggregate transfer volume of $41.2 billion as of late July.
Parallel research by TRM Labs, another blockchain analytics company, described A7A5 as part of a broader cluster of Kyrgyzstan-registered cryptocurrency entities linked to sanctions evasion. TRM Labs suggested these organizations are likely involved in facilitating imports of dual-use goods from China into Russia via Central Asia, underpinning a complex supply chain leveraging digital currency tools.
Increasing Demand and Liquidity Growth
When Promsvyazbank first announced the A7 stablecoin platform in late 2024, it highlighted the stablecoin’s ability to help Russian companies conduct smooth cross-border settlements. It notably emphasized the capability to make payments for goods and services in China without reliance on SWIFT.
Data from Elliptic revealed a dramatic increase in the stablecoin’s market capitalization, which nearly tripled in under two weeks to reach approximately $521 million. Alongside growing transaction volumes, A7A5 on July 28 noted on its Telegram channel that it had injected $100 million in fresh liquidity denominated in Tether (USDT)—a widely used U.S. dollar-backed stablecoin—into its decentralized exchange (DEX). The group stated that “demand for A7A5 to USDT at the best rates remains high, liquidity is gone in minutes,” underscoring robust trading activity.
Tether, which has cooperated with global law enforcement agencies to assist in the seizure of illicit funds across jurisdictions, had not responded to Reuters’ request for comment on A7A5’s recent activities at the time of publication.
Sanctions and Broader Implications
The rise of A7A5 exemplifies the growing use of blockchain technologies and stablecoins as alternative financial mechanisms by countries facing international sanctions. Analysts note that stablecoins—digital assets pegged to fiat currencies—offer relatively quick, borderless, and less regulated channels for value transfer, which can be leveraged to bypass international restrictions.
Neither A7A5’s promoters nor Promsvyazbank and A7 responded immediately to Reuters’ requests for comment regarding the stablecoin’s usage and transactions’ nature. Reuters independently could not verify the origin of funds or the specific reasons behind numerous transfers made via A7A5. As Russia continues to grapple with the impact of financial isolation, the deployment of crypto-based payment systems like A7A5 could potentially redefine how sanctioned nations conduct international commerce, raising important questions about enforcement and compliance in the evolving digital currency landscape.
Reporting by Alexander Marrow in London and Elizabeth Howcroft in Paris; Editing by Sharon Singleton