As Russia deals with a lot of Western sanctions and being cut off from the rest of the world financially, the Kremlin is aggressively looking at stablecoin transfers as a possible way to make payments across borders.  Russia's changing crypto strategy is having a huge effect on its foreign financial activities, from changes to the law to the rise of ruble-pegged tokens.  This development shows that Russia is relying more and more on on-chain payments. It also fits with a bigger trend of people using stablecoins to get around being excluded from SWIFT.

The Rise of Stablecoin Payments in Russia

After Russia invaded Ukraine in 2022, Western sanctions made it very hard for Moscow to do business with other countries. The most important of them was being cut off from the SWIFT network.  Because of this, bitcoin in Russia, which was under sanctions, went from being a fringe tool to a respected way to do business around the world.

Stablecoins, which are based on fiat currencies like the USD or ruble, have become key tools during this change.  Promsvyazbank and the fintech business A7 launched A7A5, a stablecoin pegged to the ruble, in January 2025. It is registered in Kyrgyzstan.  A7A5 soon became an important part of Russia's crypto workaround ecosystem as it was promoted as a way to pay for foreign trade.

Real Data: The number of stablecoin transactions has grown quickly

The adoption curve for A7A5 is steep and helpful.  Blockchain analytics startup Elliptic says that A7A5's transaction volume reached $41.2 billion in July 2025.  The stablecoin's market cap went from $521 million to $1 billion in just two weeks, with more than $1 billion changing hands every day.

 TRM Labs confirmed these results. They connected A7A5 to a bigger crypto network in Kyrgyzstan that makes it simpler to move commodities that can be used for both military and civilian purposes from China to Russia.  A7A5 showed that USDT is becoming more popular in Russia by adding $100 million worth of USDT to its decentralised exchange (DEX) to accommodate demand.

 Interesting Fact: In January 2022, stablecoins already accounted up 42% of all cryptocurrency transactions in Russia, well before the sanctions reached their pinnacle.

Also read: Case Study: TransFi API in Action – How a dApp Integrated Local Stablecoin Access in One Sprint

Stablecoins: A Way to Get Around Sanctions

 The Central Bank and the Russian Ministry of Finance are working together to write a law that would let people trade stablecoins around the world.  After the U.S. government and Tether banned accounts related to Russia in March 2025, including $27 million worth of USDT, Moscow worked harder to establish its stablecoin.

 Osman Kabaloev, Russia's deputy finance minister, underlined the need for a homegrown Tether alternative—a stablecoin backed by the ruble that can't be affected by outside forces.

 One example is the state-backed stablecoin RUBx, which was made by the tech company Rostec.  RUBx, which was made on the Tron blockchain, is linked 1:1 to the Russian ruble and works with RT-Pay, a new online payment system.  It promises easier dealings with partners from outside the West, mainly China, more openness, and reduced costs.

 Product Spotlight: TransFi and similar tools provide safe, on-ramp infrastructure for stablecoin-based transactions for businesses that need to make global cryptocurrency settlements. This helps speed up transactions and make sure they follow the rules in developing market corridors, even in places with complicated regulatory systems like Russia.

Kyrgyzstan’s Role in the Stablecoin Ecosystem 

 Kyrgyzstan has become an important centre in Russia's post-sanctions crypto strategy.  The legal VASP (Virtual Asset Service Provider) license system and the fact that digital assets are considered "civil rights objects" make it easier for bitcoin businesses to operate.  There are a number of exchanges in Kyrgyzstan that are linked to financial activity in Russia.

 When Garantex went down, Kyrgyzstan's position became even more important. A new group called Grinex, which is assumed to be Garantex's successor, started processing A7A5-based withdrawals.  But many of these VASPs are regarded to be fake businesses, which makes people wonder about unlawful money flows and unclear rules.

Future Possibilities and Ongoing Risks

 There are some good things about Russia's search for a cross-border stablecoin:

•  Less money spent on transactions
•  Settlements between countries that happen more quickly
•  Easier access for people who don't have bank accounts
•  There is a chance that trade between non-Western countries will become more integrated.

 But the challenges are significant:

•  Regulatory ambiguity is still one of the biggest problems.
•  Not everyone agrees with stablecoins yet.
•  There isn't enough oversight or openness in VASP activities.
•  There is still a chance of individual wallet-targeting sanctions.

 Russia's central bank is slowly changing its mind on cryptocurrencies because it sees their strategic usefulness.  Officials admit that a lack of international legal alignment and infrastructure is making it hard for people to use the digital ruble across borders, but the country hopes to roll it out widely by July 2025.

Conclusion: 

 Russia's switch to stablecoin payments for international trade marks the start of a new chapter in how countries might use blockchain technology to get around financial sanctions.  What began as a temporary fix has become a complicated financial system with a lot of transactions, growing institutional support, and geopolitical significance.

 Stablecoins are a powerful instrument for Moscow's finances since they can change the way payments are made, help Russia get around Western sanctions, and act as substitutes for the US dollar in Russia, even though they don't solve all of Russia's problems with Western sanctions.

 As regulatory frameworks and digital finance grow, Russia's use of stablecoins in its financial system will continue to test traditional ideas about who is in charge of the global economy.

Also read: Stablecoin Payments in Estonia: Web3 Startups, DAO Payroll, and Borderless Payments

 FAQs:

1. What do Russians use A7A5 for?

 A7A5 is a stablecoin tied to the rouble that was created by Promsvyazbank and A7 in 2025.  People use it to get around regular banks when they trade with other countries.

 2. What makes USDT still important in Russia?

 USDT is commonly utilised in Russia since it is accepted all around the world and is easy to trade.  But because of freezing events, Russia has had to establish its stablecoins.

 3. What role does Kyrgyzstan play in Russia's cryptocurrency efforts?

 Kyrgyzstan has been a key centre for cross-border transactions using stablecoins like A7A5. It is also home to many VASPs that work with Russian companies.

 4. What are the risks of utilising stablecoins in places that have been sanctioned?

 The primary problems are unclear rules, wallet freezing, not being accepted over the world, and the possibility of not following the rules with VASPs.

 5. What can businesses do to help cryptocurrency settlements in places where there is a lot of risk?

TransFi is a service that provides safe infrastructure for compliant and regulated cryptocurrency payments in new markets and complicated jurisdictions.