The stablecoin hub under sanctions: How A7A5 surged by $90 billion in one year

A stablecoin denominated in rubles has achieved countercyclical expansion under the heavy pressure of sanctions. According to the latest news, the circulation supply of ruble stablecoin A7A5 increased by nearly $90 billion in 2025, surpassing even the mainstream USDT and USDC in market prominence, becoming the most eye-catching “dark horse” in the crypto market. However, behind this rapid growth lies a more complex story.

A7A5’s Scale Expansion: Surpassing Mainstream Stablecoins

A7A5 was launched by cross-border payment company A7 LLC in January 2025, deployed on both Tron and Ethereum blockchains. Its core positioning is to provide cross-border payment solutions for Russian users facing restrictions through traditional banking channels.

From a data perspective, the expansion speed of this emerging stablecoin is indeed astonishing:

According to Chainalysis data, A7A5’s transaction volume in 2025 reached $93.3 billion, becoming an important channel to evade financial sanctions in less than a year. This growth rate is almost unprecedented in the stablecoin market.

Operational Mechanisms Under Sanctions

A7A5’s ability to achieve such expansion under sanctions stems from its unique operational design. The stablecoin is issued by an entity based in Kyrgyzstan, cleverly leveraging its geographical advantage to bypass direct sanctions. Additionally, it utilizes decentralized finance protocols, allowing users to indirectly access liquidity linked to USDT without directly holding USD stablecoins.

On a macro level, the ruble appreciated against the US dollar by over 40% in 2025, becoming one of the strongest currencies globally. This appreciation is mainly driven by Russia’s strict capital controls and ongoing interventions by the central bank. A7A5’s expansion occurs against this macro backdrop.

Controversies and Links to Illegal Activities

However, the project’s expansion history is not entirely clean. A7A5 is associated with several problematic entities:

• Connected to Russian state-owned bank Promsvyazbank
• Linked to Moldovan businessman Ilan Shor, who was convicted for involvement in approximately $1 billion bank fraud
• Has been controversial since its inception

More notably, according to Chainalysis’s latest report, illegal crypto addresses received $154 billion in 2025, a 162% increase. Among these, stablecoins accounted for 84% of all illegal transactions, making them the preferred tool for criminals to evade sanctions and conduct illicit activities. A7A5 is a key participant in this trend.

A Key Player in the Illegal Ecosystem

Among the major illegal transaction participants in 2025, as reported by Chainalysis, A7A5 ranks alongside North Korean hackers and Iranian proxy networks as significant actors. This indicates that A7A5’s rapid growth is not only driven by legitimate cross-border payment needs but also by its practical value in sanctions evasion and illegal activities.

Market Position and Risk Assessment

It is worth noting that although A7A5 has a large circulation scale, it has not yet been listed on any centralized trading platform, mainly circulating through decentralized protocols. This operational approach further reduces the reach of traditional financial regulation but also increases transparency deficiencies in the market.

The project even became one of the sponsors of the 2025 Singapore Token2049 conference. This is partly because Singapore’s sanctions against Russia mainly target licensed financial institutions and do not cover individuals or non-financial entities.

Summary

The $90 billion growth of A7A5 is a multifaceted phenomenon. On one hand, it reflects the genuine cross-border payment demand and market gaps under sanctions. On the other hand, it has become an important tool within the illegal transaction ecosystem, closely linked to sanctions evasion, money laundering, and other illicit activities. The success of this project essentially signifies a rediscovery of stablecoins as a tool for value transfer—whether for legitimate or illegal purposes. For the crypto market, A7A5’s case highlights a larger trend: in the context of escalating geopolitical tensions and sanctions, stablecoins are becoming a new battlefield in finance, with risks and opportunities rapidly expanding.