A7A5, a Russian ruble-backed stablecoin issued in Kyrgyzstan, has become the world’s largest non-US dollar stablecoin, despite being under heavy international sanctions and scrutiny. The token’s market value surged 250 per cent in a single day to reach a capitalisation of around 500 million dollars, surpassing all other non-dollar rivals, according to data from CoinMarketCap and DefiLlama.
Rapid Rise Amid Global Scrutiny
The ruble-pegged A7A5 now represents nearly 43 per cent of the total 1.2 billion dollar market cap of non-US dollar stablecoins. Its rapid growth comes at a time of heightened geopolitical tension and increased global focus on sanctions compliance within the digital asset sector.
In a statement posted on its official Telegram channel, the project claimed it had “proven that a national digital currency can be not only an alternative to the dollar but also a driver of global change.”
The announcement coincided with A7A5’s participation in Token2049, a leading global cryptocurrency conference in Singapore. Its visible presence at the event sparked debate among participants about whether sanctioned entities were being allowed to operate freely at industry gatherings.
Origins and Early Development
Launched in February 2025, A7A5 was introduced as a “token backed by a diversified portfolio of fiat deposits held in reliable banks within Kyrgyzstan’s network.” The stablecoin is pegged one-to-one with the Russian ruble and promises daily passive income to holders, equivalent to half the interest generated from the underlying deposits.
Initially, A7A5 operated on both the Ethereum and Tron blockchain networks. However, its growth trajectory soon attracted attention from regulators and analysts who linked the project to Grinex, a crypto exchange regarded as the successor to the sanctioned Russian platform Garantex.
Sanctions and International Response
In mid-August, the United States Department of the Treasury expanded sanctions to include Garantex and related entities, naming Moldovan oligarch Ilan Shor as the ultimate owner of A7A5’s issuer, Promsvyazbank (PSB), a Russian bank already under sanctions.
Shortly afterwards, the United Kingdom imposed additional sanctions on several Kyrgyz banks, stating that Russia was using A7A5 to circumvent Western financial restrictions. These developments drew widespread attention to how blockchain-based financial instruments might be exploited to bypass sanctions regimes.
Despite these measures, A7A5’s market capitalisation remained stable between 120 million and 140 million dollars for several weeks.
Record-Breaking Surge
On 25 September, A7A5 experienced a dramatic rise in value, adding 350 million dollars to its market capitalisation within 24 hours, a 250 per cent increase. This spike pushed it ahead of Circle’s euro-pegged stablecoin, EURC, which was valued at 252 million dollars at the time.
The surge occurred just days before A7A5’s appearance at Token2049, where its executive, Oleg Ogienko, spoke publicly. The project’s active participation at the event prompted further concern across the crypto industry, with many voices calling for stricter compliance checks and the closure of “regulatory loopholes” that allow sanctioned entities to promote their products on global platforms.
Links to China and Africa
Investigations by the Centre for Information Resilience (CIR), a nonprofit research organisation, have suggested that A7A5’s operations are closely tied to Chinese markets. According to CIR’s report published on Monday, “Trade with China has emerged as the dominant focus of A7’s activities to date.”
The report also cited company figures from August 2025, which showed that nearly 78 per cent of A7A5 transactions were processed through Chinese jurisdictions. In addition, the organisation has expanded its footprint in Africa, opening offices in Nigeria and Zimbabwe as part of its international growth strategy.
CIR’s report emphasised the need for deeper investigation, stating, “Further research will be needed to comprehensively understand how funding flows through the organisation’s network, the potential role of financial institutions in enabling its operations, and any linkages to Russian political interference schemes.”
Future Uncertain Despite Growth
While A7A5 continues to gain market traction, its future remains uncertain due to ongoing regulatory and political pressure. Analysts have warned that global authorities may increase scrutiny over stablecoins that could facilitate the evasion of sanctions or fund illicit activities.
Despite repeated attempts by journalists to reach A7A5 for comment on its recent growth and international expansion, the organisation did not respond before publication.
A7A5’s meteoric rise has underscored both the promise and peril of decentralised finance, highlighting how digital currencies can thrive even in the face of legal barriers while simultaneously raising serious concerns about transparency, oversight and global financial stability.
