A7A5, a stablecoin pegged to the Russian ruble, has swiftly climbed the ranks to become the world’s largest non–U.S. dollar stablecoin. With a market cap nearing $500 million and daily transfer volumes topping $1 billion, the token’s growth has drawn sharp attention from regulators who suspect it may be helping Russia evade Western sanctions.
A7A5’s Rapid Rise and Structure
Launched in early 2025 by a Kyrgyzstan-registered company, A7A5 is fully backed by ruble reserves held in Promsvyazbank—a Russian state bank already under U.S. and EU sanctions. Since its debut, the token’s supply has skyrocketed more than 240%, surpassing 41 billion coins and reaching a valuation of roughly $500 million.
According to blockchain analytics firms like Elliptic, A7A5 processes more than $1 billion in transfers every day, with total transaction volume exceeding $40 billion. However, the activity appears to be concentrated within a small cluster of wallets, raising questions about how much of that traffic reflects real economic use.
Concerns Over Sanctions Evasion
Investigations by the Financial Times and other sources reveal that over 80% of A7A5’s supply was “destroyed” and reissued after one of its linked exchanges was sanctioned. Much of the coin’s current flow reportedly moves through Grinex, a platform believed to be the successor to the U.S.-sanctioned exchange Garantex.
Analysts have also noted unusual trading behavior—repetitive transfers of identical amounts between related addresses over short time frames—suggesting internal settlements or bookkeeping movements rather than genuine market trades. These patterns have fueled suspicions that A7A5 could serve as a tool for sanctioned entities to bypass global restrictions.
Regulatory Crackdown and Market Impact
In response, the U.S. Treasury recently added both A7A5 and its issuer, A7 LLC, to its sanctions list. The European Union is said to be weighing similar measures. Following sanctions from the U.S. and U.K., the stablecoin briefly lost its peg to the ruble, dipping to 0.96 RUB before the issuer replaced its smart contract to stabilize the price.
A7A5’s rise highlights a broader push toward alternative payment networks designed to operate outside traditional dollar-based systems. Whether this experiment can withstand sustained global scrutiny remains uncertain. If enforcement weakens or regulatory coordination falters, such projects could reshape how sanctioned nations conduct cross-border finance. Experts warn that the opaque structure of these tokens demands vigilance—because in this evolving arena, not all “stable” coins are as steady as they seem.
