Rouble-Backed Stablecoin A7A5 Surges Past $40B in Transactions Amid July Surge

A rouble-pegged stablecoin, launched earlier this year to facilitate Russia’s cross-border payments, has crossed $40 billion in total transaction volume.

The milestone follows a sharp rise in demand and liquidity for A7A5 throughout July, Reuters reported Monday, citing data from blockchain analytics firm Elliptic.

The stablecoin, A7A5, is operated by Russian state-linked lender Promsvyazbank and payments platform A7, both under Western sanctions.

Kyrgyz-Launched Stablecoin Helps Russia Skirt Sanctions

The stablecoin was launched in Kyrgyzstan in January and is increasingly being used to skirt restrictions imposed after Russia’s full-scale invasion of Ukraine in 2022.

Among the most damaging sanctions was Russia’s exclusion from the SWIFT payment network, a move that severed many of the country’s global banking connections.

Promsvyazbank originally promoted A7A5 as a tool to facilitate international trade with partners like China, offering a workaround for Russian firms struggling to make cross-border payments.

Unlike most Russian banks, A7A5 allows direct stablecoin transfers without going through SWIFT, giving it a unique edge in the current financial climate.

Elliptic’s analysis revealed that more than $1 billion is now being transacted daily through A7A5, with volumes surging in July.

The coin’s total transaction volume has reached $41.2 billion, and its market capitalization tripled in less than two weeks, rising to $521 million.

Got a ping from a community member – Cryptach just scanned our main ETH contract.
Scans:
1) https://t.co/bihYqHx2bi
2) https://t.co/2akMv30I0S

Another independent service confirming the contract quality. Questions or suggestions on what else to audit?
Drop them in the… pic.twitter.com/gIXp8zLQrk

— A7A5 (@A7A5official) August 4, 2025

The rapid growth has raised concerns among blockchain researchers and Western regulators.

TRM Labs, another blockchain forensics firm, flagged A7A5 as part of a broader web of Kyrgyzstan-based entities with suspected ties to sanctions evasion.

According to TRM, the coin may also be used in the procurement of dual-use goods, items with both civilian and military applications, from China to Russia via Central Asia.

On Monday, A7A5’s Telegram channel announced that $100 million worth of Tether (USDT) liquidity had been injected into its decentralized exchange.

“Demand for A7A5 to USDT at the best rates remains high, liquidity is gone in minutes,” the post said.

Russia Uses Kyrgyz Crypto Hub to Evade Sanctions

As reported, Russian entities are exploiting Kyrgyzstan’s crypto infrastructure to bypass international sanctions and procure dual-use goods for use in Ukraine.

Following the passage of Kyrgyzstan’s “On Virtual Assets” law in January 2022, just weeks before Russia’s full-scale invasion of Ukraine, the country has transformed into a burgeoning crypto hub.

The law introduced formal licensing and oversight for virtual asset service providers (VASPs), paving the way for a rapid influx of new firms and exchanges.

By October 2024, 126 VASP licenses had been issued, and transaction volumes had surged from $59 million in 2022 to $4.2 billion in the first seven months of 2024 alone.

However, that boom has opened the door to abuse. According to TRM Labs, numerous Kyrgyz-registered exchanges appear to serve as shell entities, with multiple firms reusing the same addresses, contact information, and founders.