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 — Transaction volumes involving a rouble-backed stablecoin designed to support Russian cross-border payments have soared past $40 billion, spiking sharply in July, according to blockchain research firm Elliptic.
Since Russia’s full-scale invasion of Ukraine in February 2022, Western sanctions have severely restricted Moscow’s access to international financial systems. A key measure has been the exclusion of Russian banks from the SWIFT global messaging platform, which has curtailed Russia’s ability to conduct cross-border transactions through traditional channels. This has intensified Russia’s search for alternative payment mechanisms.
In response to these constraints, the Russian defense lender Promsvyazbank, along with payments firm A7—both entities under Western sanctions—launched the Kyrgyzstan-based rouble-backed stablecoin named A7A5 in January 2025. The project was touted as a way to facilitate foreign trade and circumvent sanctions.
Elliptic’s latest report highlights that A7A5 has gained traction as a financial tool aiding Russian businesses and individuals to bypass conventional banking restrictions. Over $1 billion now transfers daily across the network, bringing the cumulative total to $41.2 billion. The firm noted a significant surge last month in transaction volumes, liquidity, and the number of tokens circulating.
Supporting findings by blockchain analysis firm TRM Labs identified A7A5 as part of a broader web of Kyrgyzstan-registered companies linked to cryptocurrency activity used for sanctions evasion. TRM Labs also suggested these entities may be associated with the import of dual-use goods from China into Russia via Central Asia.
Promsvyazbank, upon launching A7 in late 2024, claimed the stablecoin would enable Russian companies to conduct seamless cross-border settlements, including payments for Chinese services and supplies without relying on SWIFT. Serving as a stablecoin, A7A5 offers cross-border payment capabilities that most Russian banks are currently unable to provide.
Elliptic further reported that the rising demand has tripled the market capitalization of the A7A5 stablecoin to approximately $521 million within just two weeks. On July 28, A7A5 announced via its Telegram channel that it injected an additional $100 million of liquidity in the stablecoin Tether (USDT) onto its decentralized exchange (DEX). The message highlighted that "demand for A7A5 to USDT at the best rates remains high, liquidity is gone in minutes."
Tether, known for cooperating with global law enforcement on illicit fund seizures, had not responded to Reuters’ request for comment at the time of publication. Representatives from Promsvyazbank and A7 also had not replied to inquiries.
Elliptic’s data and intelligence have previously supported law enforcement, including the U.S. Secret Service’s dismantling of the online infrastructure for the sanctioned Russian crypto exchange Garantex in March this year.
While Reuters could not independently verify the sources or final destinations of A7A5 fund transfers, the analytics underscore the stablecoin’s growing role in facilitating transactions despite ongoing sanctions.
Context:
Following the imposition of sweeping Western sanctions over Russia’s actions in Ukraine, the country’s access to the global financial system has been severely restricted. This has prompted innovative—albeit controversial—attempts to maintain international commerce through alternative financial technologies, including crypto assets.
About the Reporters:
Alexander Marrow, based in London, is Reuters’ chief companies correspondent for Russia, focusing on the country’s economy, markets, and key sectors amid ongoing geopolitical challenges.
Elizabeth Howcroft reports from Paris on finance and technology, with an emphasis on European fintech and cryptocurrency developments. She is part of the Reuters team awarded for coverage on the collapse of crypto exchange FTX in 2022. —
Reporting by Alexander Marrow in London and Elizabeth Howcroft in Paris; Editing by Sharon Singleton