A rouble-backed cryptocurrency called A7A5 has seen an explosive rise in usage, with total transfers now crossing $40 billion. This sharp growth, noted by blockchain research firm Elliptic, follows a massive spike in activity during July. Each day last month, over $1 billion was moved through the stablecoin, a digital currency backed by Russia’s national currency, the rouble.
A7A5 was launched in early 2024 by Promsvyazbank, a Russian defense sector bank under Western sanctions, and the payments firm A7. Both organizations are also subject to restrictions but established the coin through a base in Kyrgyzstan, likely to sidestep global financial blocks. The coin is now widely used for international transactions by Russian businesses struggling to access traditional banking systems due to the country’s removal from the SWIFT network.
Russian-Linked Stablecoin Records Unprecedented Spike
As sanctions bite deeper into Russia’s economy, digital alternatives like A7A5 have become vital tools for trade. The stablecoin allows Russian firms to settle cross-border payments, especially with countries like China, without needing SWIFT or other traditional messaging systems.
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According to Elliptic and TRM Labs, another blockchain intelligence firm, the A7A5 coin is helping Russian entities quietly carry out international business. TRM Labs also linked the coin to a network of crypto firms based in Kyrgyzstan. These firms are suspected of helping with the trade of dual-use goods. Dual-use goods are items that can be used for both civilian and military purposes. The trade is believed to involve shipments from China to Russia.
The creators of A7A5 have emphasized its use for seamless trade settlements. In a recent post on Telegram, the platform announced it had added $100 million worth of Tether (USDT) liquidity to its decentralized exchange (DEX). Tether is one of the world’s most used stablecoins, typically tied to the U.S. dollar.
Over $1 Billion Transferred Daily in July
Elliptic’s latest data shows a dramatic increase in transfers using A7A5. Activity surged in July, with over $1 billion flowing through the token each day. The total value of transactions since its launch has now hit $41.2 billion. At the same time, the number of tokens in circulation and available liquidity have grown significantly.
The DEX run by A7A5 has been attracting high demand, especially from users looking to trade A7A5 into Tether. The platform claimed that the liquidity added is consumed within minutes. This suggests a growing reliance on the coin by users who need quick and flexible access to global assets.
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Despite the transparency of blockchain, the exact source of funds and specific reasons behind many of these transactions remain unknown. Still, the volume and pace of growth have drawn attention from international observers and enforcement agencies.
Market Value Triples in Less Than Two Weeks
Along with rising usage, A7A5’s market capitalization has tripled in less than two weeks. The total value of all A7A5 coins now stands at $521 million, according to Elliptic. This rapid growth reflects increasing interest and usage, particularly by individuals and businesses facing banking limitations due to sanctions.
While Tether, a company known for working with law enforcement to track illicit transactions, has not yet commented, the trend is sparking concern. Both Elliptic and TRM Labs have flagged A7A5’s role in potentially helping Russian entities bypass financial restrictions.
Neither Promsvyazbank, A7, nor the A7A5 team has responded to requests for clarification on the nature of the transactions or the identities of the users driving the surge. But blockchain analysts say the data is clear. A7A5 is becoming a key tool in side-stepping traditional financial rules.