Russia's Sanction-Busting Stablecoin A7A5 Hits $90B Growth Before Crackdown
A yahoo finance report revealed that a Russian-backed stablecoin called A7A5 has seen explosive growth despite international sanctions. Designed to help firms bypass finance restrictions, it became the fastest-growing stablecoin in 2025. Western governments have since targeted the project as part of broader financial pressure on Russia.
A7A5 was launched to ease cross-border payments for Russian companies facing sanctions. The token is backed by ruble deposits at Promsvyazbank, a sanctioned state-owned bank, and issued by Old Vector, a firm registered in Kyrgyzstan. Its origins trace back to the A7 payment platform, which itself emerged from Garantex—a crypto exchange founded by Sergey Mendeleev and sanctioned by the US in August 2025 for alleged ties to cybercrime.
By the end of 2025, A7A5 had added $90 billion to its circulating supply, outpacing major rivals like USDT and USDC. Over 35,500 accounts held the stablecoin by January 2026, with a total of 42.5 billion tokens in circulation, worth around $547 million. Cumulative on-chain transactions for A7A5 also surpassed $100 billion since its launch.
Yet sanctions began to take their toll in mid-2025. Issuance of new tokens stalled, and transaction volumes dropped. Exchange controls and regulatory crackdowns further squeezed liquidity, demonstrating how financial restrictions can disrupt even blockchain-based systems.
A7A5's rapid expansion highlights the shift toward alternative payment methods under sanctions. While its growth initially defied expectations, regulatory measures have since slowed its momentum. The case underscores both the resilience and vulnerabilities of stablecoins in a sanctioned economy.
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