A7A5 Surpasses $40 Billion in Transactions Amid July Surge

Rouble-backed stablecoin A7A5 has surged past $40 billion in total transaction volume, driven by a significant increase in demand and liquidity during July 2025. The stablecoin, launched in January in Kyrgyzstan, is managed by Russian state-linked lender Promsvyazbank and payments platform A7, both of which are subject to Western sanctions [1]. A7A5 is designed to facilitate international trade for Russian firms facing restrictions due to sanctions imposed following Russia’s full-scale invasion of Ukraine in 2022 [1].

Unlike most Russian banks, A7A5 allows direct stablecoin transfers without using SWIFT, a major advantage in the current financial climate. Elliptic, a blockchain analytics firm, reported that over $1 billion is now transacted daily through A7A5, with its total transaction volume reaching $41.2 billion [1]. The stablecoin’s market capitalization has also seen rapid growth, tripling in under two weeks to $521 million [1].

The stablecoin’s Telegram channel recently announced that $100 million worth of Tether (USDT) liquidity had been added to its decentralized exchange, indicating ongoing strong demand for A7A5-to-USDT conversions [1]. The high transaction volumes and increased liquidity suggest that the stablecoin is gaining traction among users seeking alternatives to traditional financial systems.

However, the growth of A7A5 has raised concerns among blockchain researchers and Western regulators. TRM Labs, another blockchain forensics firm, has flagged the stablecoin as part of a broader network of Kyrgyzstan-based entities suspected of being used for sanctions evasion [1]. According to TRM, the coin may also be facilitating the procurement of dual-use goods—items with both civilian and military applications—between Russia and China via Central Asia [1].

Kyrgyzstan has emerged as a significant crypto hub following the introduction of its "On Virtual Assets" law in January 2022, which brought formal licensing and oversight for virtual asset service providers (VASPs). By October 2024, 126 VASP licenses had been issued, and transaction volumes had surged from $59 million in 2022 to $4.2 billion in the first seven months of 2024 [1]. However, the rapid expansion has also led to concerns about potential abuse, with multiple Kyrgyz-registered exchanges suspected of operating as shell entities [1].

Experts warn that A7A5 could play a role in enabling Russia to circumvent Western financial restrictions, particularly given the country’s exclusion from the SWIFT payment network. Promsvyazbank initially promoted A7A5 as a tool to facilitate trade with partners like China, providing an alternative for Russian firms struggling with cross-border payments [1].

The development of A7A5 highlights the growing use of stablecoins and decentralized finance (DeFi) in circumventing traditional financial systems. While these tools offer efficiency and flexibility, they also pose challenges in terms of regulatory oversight and the potential for misuse in sanction evasion and illicit trade [1].

[1] Source: [1] Rouble-Backed Stablecoin A7A5 Surges Past $40B in Transactions Amid July Surge

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