SKN | Ruble Stablecoin A7A5 Quietly Surpasses USDT and USDC in Supply Growth Despite Sanctions

A little-known ruble-denominated stablecoin has emerged as one of the fastest-growing digital currencies of the past year, highlighting how crypto infrastructure continues to adapt to geopolitical and financial restrictions even under heavy international sanctions.

A7A5, a stablecoin pegged to the Russian ruble, expanded its on-chain supply by roughly $89.5 billion in 2025, outpacing growth in market leaders Tether’s USDT and Circle’s USDC, according to data compiled by Artemis. The growth comes despite A7A5’s links to sanctioned entities and its complete absence from centralized exchanges.

A sanctions-era payments rail

Launched in January 2025 by A7 LLC, A7A5 was designed as a cross-border settlement tool for Russian users navigating restrictions on the traditional banking system. The firm is linked to Russia’s state-owned Promsvyazbank and Moldovan businessman Ilan Shor, both of which are subject to Western sanctions.

Rather than competing directly with dollar-backed stablecoins in global markets, A7A5 appears to fill a more specific niche. Issued via a Kyrgyz entity and circulating on both the Tron and Ethereum blockchains, the token allows Russian businesses and individuals to move value internationally without directly touching the banking rails dominated by the U.S. dollar.

Crucially, A7A5 also provides indirect access to the deep liquidity of USDT through decentralized finance protocols. By swapping into USDT pools on decentralized exchanges, users can access global crypto liquidity without holding dollar-denominated stablecoins outright — an important distinction for entities seeking to minimize compliance risk.

Outgrowing the giants, quietly

In absolute terms, A7A5’s growth exceeded that of the world’s two largest stablecoins. Over the same period, USDT expanded its supply by roughly $49 billion, while USDC added about $31 billion.

Unlike its dollar-pegged counterparts, A7A5 does not trade on centralized exchanges and is available only through decentralized venues such as Uniswap. This lack of exchange exposure has kept the token largely out of public view, even as its on-chain footprint ballooned.

The project’s visibility increased late in the year when A7A5 appeared as a sponsor at the Token2049 conference in Singapore. The sponsorship was permitted under Singapore’s sanctions regime, which targets licensed financial institutions rather than individuals or unregulated entities — underscoring the regulatory gray areas that still surround crypto activity linked to sanctioned jurisdictions.

Ruble strength adds an unusual tailwind

A7A5’s expansion coincided with an unexpected rally in the Russian ruble itself. Despite sanctions and weak long-term fundamentals, the currency strengthened more than 40% against the U.S. dollar in 2025, making it one of the best-performing global currencies.

That move was driven less by economic growth than by aggressive capital controls, export settlement requirements, and sustained intervention by the Russian central bank. For users of a ruble-denominated stablecoin, the appreciation reduced currency risk and may have encouraged greater on-chain settlement activity.

From a market psychology perspective, the episode illustrates how capital seeks functional pathways even in constrained environments. Where traditional finance closes doors, crypto rails — particularly decentralized ones — can reopen them, albeit with elevated legal and reputational risks.

What to watch next

A7A5’s rise does not threaten the dominance of dollar-based stablecoins in global crypto markets, but it does highlight a growing fragmentation of digital money along geopolitical lines. As sanctions regimes tighten and capital controls proliferate, more region-specific stablecoins may emerge to serve localized demand.

The key risk is regulatory response. Increased scrutiny of DeFi on-ramps, tighter enforcement around sanctions evasion, or coordinated action against blockchain infrastructure could quickly disrupt these flows. At the same time, the episode reinforces a broader trend: stablecoins are becoming tools of financial statecraft as much as market plumbing — and their growth is no longer confined to the dollar.