Russia's efforts to create alternative payment systems outside Western financial circuits could accelerate thanks to a new cryptographic asset pegged to the rouble.
According to a 25 June Financial Times report, a Russian-linked stablecoin has quietly processed over $9.3 billion in transactions in just four months since its launch. Introduced in Kyrgyzstan in February 2025, the stablecoin, called A7A5, is billed as the first digital token fully backed by Russian currency.
Although the token is presented as an autonomous and open project, its links to sanctioned organisations raise suspicions that it may be part of a broader plan to circumvent Western sanctions and enable cross-border payments for Russian companies restricted by the US, EU and UK.
Bonds-With-Garantex, Grinex-And-Adjustment-of-Russian-Sanctions
Promsvyazbank, a Russian bank subject to US and EU sanctions, and A7, a company associated with controversial billionaire Ilan Shor - convicted of embezzling USD 1 billion in Moldova - are among the companies linked to A7A5.
The token launch came shortly after US authorities shut down Garantex, a major Russian cryptocurrency exchange accused of facilitating more than $60 billion in illegal transactions. The main exchange platform for A7A5 is now Grinex, a new exchange opened in Kyrgyzstan around the same time.
Several sums of USDT were allegedly transferred from Garantex's wallets to A7A5 and then to Grinex before Garantex was shut down. Although Grinex denies any direct relationship, blockchain analysis companies Elliptic and Global Ledger speculate that Grinex may be a successor platform to Garantex.
Grinex would exclusively process trades in A7A5, Russian roubles and USDT. Trading activity, according to analysis, increases during Moscow business hours, suggesting a concentrated user base among Russian companies.
Researchers at the Center for Information Resilience also noted that A7A5 may be part of Russia's efforts to expand its political influence abroad, noting online links between the token and websites used in disinformation campaigns in Moldova.
Despite the concerns, the A7A5 team says the token was developed to meet the growing demand for stablecoins pegged to the Russian currency and dismisses any allegations of involvement in illicit payment activities. According to the Financial Times, CEO Leonid Shumakov said Kyrgyzstan was chosen for its reputation as a 'friendly jurisdiction' and to help Russian customers adapt to growing international pressure.
These statements reflect a broader commitment by politicians in the region to develop alternative payment methods. In April alone, Russian officials promoted local alternatives to stablecoins, especially after US authorities froze USDT 23 million on Garantex as part of a wider international crackdown.
