Russia’s ruble-pegged stablecoin helped evade sanctions to the tune of $100 billion

Core Insights - Tether's USDT has become a crucial asset for Russia to circumvent Western sanctions, with the ruble-pegged stablecoin A7A5 surpassing $100 billion in transactions [1] - A7A5 has seen significant growth in user accounts, increasing from 14,000 in July 2025 to 35,500, with total exchange volumes reaching $17.3 billion [2] - Recent sanctions from the U.S., U.K., and EU have led to a noticeable decline in A7A5 activity, with transaction volumes dropping from over $1.5 billion per day to around $500 million [4] Group 1: A7A5 Activity and Growth - A7A5 transactions have exceeded $100 billion, with 250,000 transactions recorded among 41,300 wallet addresses in less than a year [1] - The primary trading pairs for A7A5 are A7A5/rubles at $11.2 billion and A7A5/USDT at $6.1 billion, highlighting its role as a bridging asset [2] - The current circulation of A7A5 is over 42.5 billion, valued at $547 million, with no major issuances since late July 2025 [4] Group 2: Impact of Sanctions - A7A5 activity is showing signs of stalling due to sanctions targeting Russian-linked crypto infrastructure, with Western governments freezing significant Russian assets [3] - The decline in transaction volumes is attributed to the impact of U.S., U.K., and EU sanctions, which have visibly affected A7A5's market activity [4] - A7A5 is becoming increasingly isolated from the broader crypto ecosystem, as only its issuer can blacklist addresses, limiting its integration with other cryptocurrencies [7]