A ruble-pegged stablecoin called A7A5 has quietly become the 21st largest stablecoin in the world, with a market cap exceeding $500 million and total volume surpassing $72 billion in just over one year. According to TRM Labs' 2026 Crypto Crime Report, at least $39 billion of that volume flowed through wallets tied to sanctions evasion, making A7A5 the single largest vehicle for illicit stablecoin activity ever documented. As of February 2026, the token operates primarily on the Tron blockchain and trades on sanctioned exchanges that Western regulators have struggled to shut down.
A Kremlin-Aligned Stablecoin With $72 Billion in Volume
A7A5 launched in February 2025 through a company called Old Vector, registered in Kyrgyzstan. The parent entity, A7, is co-owned by sanctioned Moldovan oligarch Ilan Shor, who resides in Russia, and Promsvyazbank (PSB), a state-owned Russian bank with deep ties to the country's defense industry. Legal firm Astraea Group identified A7's subsidiaries, including A7-Agent, A7 Goldinvest, and A71, as operating across oil, gas, metals, chemicals, and defense technology sectors.
The stablecoin initially traded on Garantex, a Moscow-based crypto exchange. After Garantex was sanctioned and shut down in 2025, trading migrated to Kyrgyzstan-based platforms including Grinex (identified as Garantex's successor), Meer, and Bitpapa. Token volume spiked after the Bitpapa listing, despite the exchange facing its own OFAC sanctions.
A7A5's director for regulatory and overseas affairs, Oleg Ogienko, told Cointelegraph the company "is not violating the laws of Kyrgyzstan, where doing business with Russian companies is not prohibited." A company spokesperson added that "companies and individuals globally use the A7A5 ruble stablecoin for export-import contracts, cross-border payments and blockchain projects."
The $158 Billion Illicit Crypto Surge
TRM Labs' report placed A7A5 at the center of a record-breaking year for crypto crime. Total illicit crypto volume hit $158 billion in 2025, a 145% surge year-over-year. Sanctions-related activity alone reached $93 billion, a 400% increase from 2024. A7A5 accounted for 77% of all illicit stablecoin flows, or roughly $72 billion.
"State-aligned actors, professional criminals and sanctions evaders are no longer experimenting with crypto; they're operating durable financial infrastructure onchain," said Ari Redbord, TRM Labs' global head of policy and a former U.S. Treasury official. "Wallets tied to the A7 network alone accounted for at least $39 billion, reflecting coordinated, state-aligned financial infrastructure built for sanctions evasion."
Andrew Firman, head of national security at Chainalysis, called the token development "Russia's next logical step in efforts to develop alternative payment systems to circumvent sanctions."
Not all of A7A5's volume is necessarily illicit. TRM Labs noted the figure includes "sanctioned activity more broadly, including state-aligned economic flows." However, roughly 34% of trading volume showed signs of artificial inflation through wash trading, according to the report.
How the Pipeline Actually Works
The mechanics reveal a deliberate, business-oriented system rather than a shadowy underground network. Chainalysis data shows that A7A5 trading occurs primarily Monday through Friday, with peak activity early in the week. This pattern suggests corporate and institutional users processing cross-border payments, not retail speculation.
The network connects Russia-linked actors with counterparties across China, Southeast Asia, and Iran. Chinese-language escrow services processed over $103 billion in 2025 (up from $123 million in 2020), creating overlapping channels for sanctioned trade flows.
The banking integration is perhaps the most telling indicator of state backing. In July 2025, Promsvyazbank announced that its cardholders could purchase A7A5 tokens directly, with plans to extend the service to additional banks. A defense-linked state bank integrating stablecoin purchases into its card infrastructure is not something that happens without Kremlin approval.
The Tron blockchain, which hosts the majority of A7A5 activity, has become the default rail for sanctioned stablecoin flows globally. In Venezuela, Tether (USDT) on Tron remains the preferred tool. In Iran, illicit activity is "overwhelmingly" concentrated in Tether transactions on Tron as well. A7A5 follows the same playbook but with a ruble peg that keeps value anchored to the Russian economy rather than the dollar.
What This Means for Crypto Compliance
The A7A5 case exposes a widening gap between regulated and unregulated crypto infrastructure. TRM Labs found a 30% decrease in stablecoin flows to sanctioned jurisdictions on regulated exchanges with KYC protocols. But the same flows surged over 200% on decentralized services lacking compliance standards. Enforcement is reshaping where illicit activity occurs, not whether it occurs.
For crypto card users and mainstream platforms, this creates a paradox. Regulated services like Coinbase, Kraken, and Binance are increasingly effective at blocking sanctioned flows. But every dollar that leaves regulated rails finds a home on platforms like Grinex, Meer, and Bitpapa. The pressure is not reducing total volume; it is concentrating compliant users on one side and sanctioned actors on the other.
This bifurcation matters for anyone holding stablecoins. The 95% figure, the share of inflows to sanctioned entities that used stablecoins, guarantees that stablecoin regulation will accelerate. The SEC's recent move to slash stablecoin capital charges from 100% to 2% for broker-dealers was designed to bring more stablecoin activity onto regulated balance sheets. But it also reflects a recognition that the alternative is losing visibility entirely.
The Bigger Picture: Crypto's Sovereignty Arms Race
Russia is not the only country building parallel financial rails. China's digital yuan, Iran's rial-backed tokens, and Venezuela's Tether-heavy economy all represent attempts to operate outside Western payment infrastructure. What makes A7A5 different is the scale ($72 billion in year one) and the explicit state backing (a defense bank integrating stablecoin purchases into its card products).
This is the tension that will define stablecoin regulation for the rest of 2026. The U.S. CLARITY Act, which Ripple CEO Brad Garlinghouse recently gave an "80% chance" of passing by April, would establish clear rules for which digital assets fall under securities law. The European Parliament's recent digital euro vote reflects the same urgency from a different angle: if sanctioned actors can build $72 billion stablecoin networks in 12 months, sovereign digital currencies become a national security priority, not just a convenience project.
For users of self-custody wallets and non-custodial crypto cards, the regulatory tightening that follows stories like A7A5 is a double-edged sword. Greater compliance requirements make legitimate services safer but also raise the bar for privacy-conscious users who are not evading anything.
FAQ
How big is the A7A5 stablecoin? A7A5 has a market cap exceeding $500 million, making it the 21st largest stablecoin globally per DefiLlama data. It processed over $72 billion in total volume in its first year of operation, with at least $39 billion tied to sanctions-related flows.
Who owns A7A5? The parent company A7 is co-owned by sanctioned Moldovan oligarch Ilan Shor and Russia's state-owned Promsvyazbank (PSB), a bank with ties to the defense industry. Subsidiaries include A7-Agent, A7 Goldinvest, and A71, operating across energy, metals, chemicals, and defense sectors.
Is all A7A5 activity illegal? Not necessarily. TRM Labs noted the $39 billion figure includes "sanctioned activity more broadly, including state-aligned economic flows." The company claims it operates legally in Kyrgyzstan and implements KYC and AML procedures. However, roughly 34% of trading volume showed signs of wash trading.
What blockchain does A7A5 run on? A7A5 operates primarily on the Tron blockchain, which has become the default rail for sanctioned stablecoin flows globally. Tron also hosts the majority of USDT activity linked to sanctions evasion in Venezuela and Iran.
Will this affect stablecoin regulation? Almost certainly. The 95% concentration of sanctioned inflows in stablecoins guarantees accelerated regulatory action. The U.S. CLARITY Act and the EU's digital euro initiative are both driven in part by the need to compete with parallel financial systems like A7A5.
Overview
Russia has built a parallel financial system on a ruble-pegged stablecoin that processed $72 billion in its first year, with $39 billion flowing through sanctions-evasion channels. The A7A5 token, backed by a sanctioned oligarch and a state defense bank, operates on Tron through sanctioned exchanges and now integrates directly with Russian bank cards. TRM Labs' data shows this is not a fringe operation but a deliberate, state-aligned financial infrastructure that dwarfs most legitimate stablecoin projects. For the broader crypto ecosystem, A7A5 is both a warning and a catalyst: it proves that enforcement displaces rather than eliminates illicit flows, and it will accelerate stablecoin regulation worldwide.
Recommended Reading
- The SEC Just Slashed Stablecoin Capital Charges From 100 Percent to 2 Percent, and Broker-Dealers Are Already Circling
- The European Parliament Just Backed the Digital Euro by 443 Votes, Setting Up a 2027 Pilot and 2029 Launch That Could Reshape How 350 Million People Pay
- Tether Kills Its Offshore Yuan Stablecoin After China Formally Bans All RMB-Pegged Tokens
