How a Russian stablecoin drove a 400% surge in sanction-dodging crypto activity

Just a little over a year after its debut, Russian ruble-backed digital token A7A5 is one of the biggest stablecoins in existence.

And the token’s use in dodging sanctions is likely playing a part, according to a Wednesday report from blockchain analytics firm TRM Labs.

“Sanctions-related activity in 2025 was overwhelmingly driven by Russia-linked flows, largely due to the rapid growth of the ruble-pegged stablecoin A7A5, which processed more than $72 billion in total volume,” the company said in its 2026 Crypto Crime Report.

A7A5 is issued by a Kyrgyzstani company called Old Vector.

“The token is regulated under the country’s comprehensive digital asset framework, operates under state supervision, and meets all requirements for fiat backing, regular independent audits, and investor protection,” its website says.

With a market value of over $500 million, according to DefiLlama data, A7A5 is the 21st biggest stablecoin. Most of the token’s activity happens on the Tron blockchain, and unlike other stablecoins, it is barely traded on well-known exchanges.

Sanction dodging up

Crypto crime in 2025 surged, according to TRM Labs, with the biggest increase in illicit activity coming from sanctions-related activity — which shot up 400% from 2024.

And the vast majority of volume associated with inflows to sanctioned entities and jurisdictions in 2025 was associated with A7A5: a total of $72 billion out of $93 billion.

But not all A7A5 activity is related to avoiding sanctions, the report said, “but rather sanctioned activity more broadly, including state-aligned economic flows.”

TRM Labs also said that new designations of large entities such as crypto exchange Garantex and Russian cross-border payment platform A7 — both sanctioned in 2025 — led to the increase from 2024.

A7A5’s developers did not immediately respond to DL News’ questions.

Talking crypto

The US, Canada, the European Union, and others heavily sanctioned Russia after it invaded Ukraine in 2022.

Its access to the dollar and euro markets has since been limited, and lawmakers in the country have been talking about using crypto to get around sanctions for some time.

Back in 2022, Deputy Finance Minister Alexey Moiseyev spoke about using stablecoin rails in order to trade with friendly countries. He floated the idea of digital tokens pegged to gold.

And President Vladimir Putin himself has praised the power of permissionless crypto.

“For example, Bitcoin, who can ban it? Nobody,” the Russian leader said in 2024.

“And who can prohibit the use of other electronic payment instruments? Nobody, because these are new technologies.”

Mathew Di Salvo is a news correspondent with DL News. Got a tip? Email at [email protected].