DeFi's Sanction-Proof Surge: A7A5 Claims Global Stablecoin Crown

The Russian ruble-pegged stablecoin A7A5 has emerged as the leading non-US dollar stablecoin, with a market capitalization of $500 million as of October 2025, representing 43% of the total $1.2 billion market cap for non-dollar stablecoinsCointelegraph^[1]. Launched in February 2025 by A7 LLC, a sanctioned entity linked to Moldovan oligarch Ilan Shor and Russia's state-owned Promsvyazbank, A7A5 is backed by ruble deposits held in Kyrgyzstan-based banks. Despite multiple sanctions from the U.S. Treasury and the UK, the stablecoin has grown rapidly, with its supply increasing by 240% in two weeks to 41 billion tokensCybernews^[2].

A7A5's growth is attributed to its role in facilitating cross-border transactions for Russian businesses and individuals bypassing Western financial restrictions. Blockchain analysis by Elliptic revealed $9.3 billion in A7A5 transactions over four months, with 61% of trades involving rubles and 39% involving USDTFinancial Times^[3]. The stablecoin's expansion into China, where 78% of its transactions occur, and its presence in African markets, including Nigeria and Zimbabwe, further underscore its global reachCointelegraph^[1].

Sanctions against A7A5 and its affiliated entities have not curtailed its momentum. The U.S. Treasury sanctioned A7 LLC and Promsvyazbank in August 2025, citing their role in enabling Russia to evade financial restrictions. The UK followed with sanctions on Kyrgyzstan-based banks, including Keremet Bank, which A7A5 claims verifies its ruble reservesCointelegraph^[1]. Despite these measures, A7A5's market cap surged by $350 million in a single day in September 2025, overtaking Circle's EURC to claim the top spotCointelegraph^[1].

The stablecoin's presence at Token2049, a major crypto conference in Singapore, sparked controversy. A7A5's director of international development, Oleg Ogienko, participated in the event, while the project sponsored a massage lounge, drawing criticism from sponsors concerned about compliance risksCoinCentral^[6]. Organizers, based in Hong Kong, navigated regulatory differences between Singapore's strict sanctions and Hong Kong's more lenient stance toward Russia, allowing the sponsorship to proceedBitcoinEthereumNews^[7].

Analysts highlight A7A5's strategic use of Kyrgyzstan as a jurisdiction to circumvent sanctions. Leonid Shumakov, A7A5's director, stated that Kyrgyzstan's "friendly jurisdiction" provides a workaround for Russian financial pressureCoindesk^[5]. The Centre for Information Resilience (CIR) noted that 78% of A7A5 transactions occur through Chinese jurisdictions and that the stablecoin's network may facilitate Russian political interference schemesCointelegraph^[1].

The rapid rise of A7A5 underscores the challenges of regulating cross-border crypto transactions in a fragmented global sanctions landscape. While Western regulators emphasize compliance, jurisdictions like Hong Kong and China's trade ties with Russia create loopholes. A7A5's success reflects broader trends of decentralized finance (DeFi) enabling alternative payment systems, particularly in regions with limited access to traditional banking.