Update (Oct. 7, 7:30 am UTC): This article has been updated to add comments by a representative at A7A5.
A7A5, a Russian ruble-backed stablecoin issued in Kyrgyzstan, has become the world’s biggest non-US dollar stablecoin despite facing multiple sanctions.
A7A5’s market capitalization stood at almost $500 million on Monday, about 43% of the total $1.2 billion market cap of non-US dollar stablecoins, according to data from CoinMarketCap and DefiLlama.
“We have already proven that a national digital currency can be not only an alternative to the dollar but also a driver of global change,” A7A5 wrote on its Telegram channel on Saturday.
The statement came as the project drew attention at Token2049, a major crypto industry event in Singapore, where its presence raised questions about sanctions compliance and the project’s growing international exposure.
A7A5: A brief timeline of sanctions
The A7A5 stablecoin was launched in February as a “token backed by a diversified portfolio of fiat deposits held in reliable banks within Kyrgyzstan’s network.”
Pegged 1:1 to Russia’s national fiat currency, the ruble, A7A5 promised to distribute a daily passive income equal to half of the interest on deposits. The token was initially issued on two blockchain networks, Ethereum and Tron.
Soon after its debut, blockchain analysts linked A7A5 to Grinex, a crypto exchange widely seen as the successor to the sanctioned Russian Garantex exchange.
In mid-August, the US Treasury announced sanctions against Garantex and related entities, highlighting Moldovan oligarch Ilan Shor as the owner of A7A5’s issuer, the sanctioned Russian bank Promsvyazbank PSB.
The United Kingdom also promptly imposed sanctions on several banks in Kyrgyzstan, reporting that Russia used A7A5 to bypass Western financial restrictions.
A7A5 added $350 million in one day
Despite broad sanctions, A7A5’s market value has held steady between $120 million and $140 million.
On Sept. 25, A7A5’s market cap surged by $350 million — a 250% jump in one day — making it the largest non-US dollar stablecoin by value, ahead of Circle’s euro-pegged EURC (EURC), which stood at $252 million at the time of writing.
The sharp rise in A7A5’s market cap came just days before the project’s appearance at Token2049, where it hosted a booth and executive Oleg Ogienko took the stage.
A7A5’s presence at the conference sparked controversy within the crypto community, with many calling for compliance and “closing regulatory loopholes” at industry events.
Some investigators have linked A7A5’s growth to ties with China. “Trade with China has emerged as the dominant focus of A7’s activities to date,” nonprofit organization Centre for Information Resilience (CIR) said in a report on Monday.
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CIR reported that “78% of A7 transactions went through Chinese jurisdictions according to figures shared by the company in August 2025,” adding that the stablecoin has also been heavily expanding into Africa, with offices in Nigeria and Zimbabwe.
“Further research will be needed to comprehensively understand how funding flows through the organization’s network, the potential role of financial institutions in enabling its operations and any linkages to Russian political interference schemes,” CIR added.
A7A5 rejects sanctions-evasion claims, calls accusations politicized
“The accusations are politicized and lack factual evidence,” a spokesperson at A7A5 told Cointelegraph on Monday, stressing that the stablecoin complies with laws and international standards, including those set by the Financial Action Task Force (FATF).
“A7A5 is an innovative project in digital finance and distributed ledger technologies aimed at improving cross-border trade and investment efficiency,” A7A5 said.
Addressing the $350 million spike in A7A5’s market cap, the representative cited the token issuance outlined in the stablecoin’s white paper. According to the person, the stablecoin targets issuance worth 100 billion rubles ($1.2 billion).
“The volume depends on market demand,” the spokesperson for A7A5 said, adding:
“Companies and individuals globally use the A7A5 ruble stablecoin for export-import contracts, cross-border payments and blockchain projects. Its growth reflects a nondiscriminatory approach to value transfer on the blockchain.”
A7A5’s pushback against sanctions-evasion accusations came amid reports that the European Union was planning to impose new sanctions on the stablecoin.
According to a report by Bloomberg, the sanctions would prohibit EU-based entities from engaging in transactions involving A7A5, whether directly or indirectly.
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