Russia uses kremlin-backed stablecoin to evade US sanctions
A Russian digital payments network tied to state banks has processed more than $6bn through its stablecoin A7A5 since August, despite new U.S. sanctions. The coin sits at the center of A7, a payment system designed to bypass Western financial restrictions.
Token reissue to evade controls
Blockchain records show that over 80% of A7A5 tokens were destroyed and reissued in new wallets after sanctions hit affiliated exchanges. The move effectively severed links between frozen assets and new tokens, allowing continued transactions across A7’s network.
State-backed structure
The system is supported by Promsvyazbank, a state lender under Western sanctions, and VEB, Russia’s development bank. Its issuer, Old Vector, is registered in Kyrgyzstan and claims each token is backed by a ruble. Russian regulators have now classified A7A5 as a digital financial asset eligible for trade payments.
Strategic expansion
A7’s head, businessman Ilan Șor, has said the platform is growing internationally to support Russian exports. Analysts view the network as a key test of Moscow’s strategy to build independent payment infrastructure outside Western oversight.
Author
Jacob Lazurek
Coinpaprika
In the dynamic world of technology and cryptocurrencies, my career trajectory has been deeply rooted in continuous exploration and effective communication.
