Russia-Backed A7A5 Stablecoin Moves $9.3B in 4 Months Despite $156M Market Cap

In Brief:

A7A5, a ruble-backed stablecoin launched in Kyrgyzstan, facilitated $9.3B in trades in just four months.

Volume far exceeds Kyrgyzstan's domestic capacity, raising concerns over sanctions evasion via Russian-linked exchanges.

A7A5, a ruble-backed stablecoin issued in Kyrgyzstan, has processed $9.3 billion in transaction volume in just four months, despite having a market cap of only $156 million. The token was launched as part of Kyrgyzstan’s push to develop its blockchain sector, with reports suggesting heavy usage by Russian-linked actors to bypass international sanctions. Blockchain data indicates that A7A5 has been widely circulated on platforms connected to Garantex—a sanctioned Russian exchange—further fueling suspicion that the token is being used to facilitate cross-border trade for sanctioned entities.

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Promsvyazbank, a Russian state-owned institution tied to the defense sector, is reportedly holding A7A5’s fiat reserves. While official data remains scarce, the stablecoin’s unusually high turnover has triggered alarm among international observers tracking crypto’s role in sanctions evasion.

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