Russia's Finance Ministry Considers Domestic Stablecoins Amid USDT Restrictions

Russia’s Finance Ministry is exploring the development of domestic stablecoins pegged to foreign currencies. This move comes in response to restrictions on access to Tether’s USDT for wallets linked to the sanctioned Russian exchange Garantex. Osman Kabaloev, deputy head of the ministry’s financial policy department, indicated that Russian authorities are now considering internal tools similar to USDT, suggesting the creation of their own stablecoin.

This development follows the blocking of digital wallets on the Russian crypto exchange Garantex, which cut off access to over 2.5 billion roubles. The restrictions on Tether occurred after the firm froze assets linked to the platform shortly after the EU sanctioned Garantex. The exchange disclosed the action on March 6, stating that the freeze forced it to suspend operations as it could no longer facilitate user redemptions.

Stablecoins have become crucial for crypto investors seeking to bridge between digital assets and traditional currencies. Before the recent restrictions, Russian companies had widely adopted USDT for international transactions due to increasing barriers to accessing the global financial system.

Russian regulators have traditionally maintained a strict stance on using crypto within the domestic economy, particularly for retail payments. However, a limited regulatory framework has allowed firms to experiment with crypto-based settlement systems for international trade to mitigate the effects of Western sanctions. The Finance Ministry’s current consideration of stablecoins marks a continued exploration of such alternatives.

Kabaloev’s remarks suggest a shift in strategy toward developing sovereign or semi-sovereign tools for cross-border value transfer. While the Finance Ministry did not disclose a specific design or implementation timeline, it appears open to stablecoins pegged to the US dollar and other foreign currencies.

Bank of Russia Governor Elvira Nabiullina reiterated the central bank’s resistance to domestic crypto circulation but acknowledged that Russian firms are actively testing international crypto payment solutions as part of the regulatory sandbox. The new stance comes amid broader efforts to increase Russia’s financial autonomy and minimize reliance on Western financial infrastructure. In this context, creating a ruble-independent stablecoin tied to alternative foreign currencies could offer Russian firms a controlled and internally governed method for accessing global liquidity.

While the Russian Finance Ministry has not committed to formal stablecoin issuance, the proposal reflects growing attention among Russian institutions to the operational risks of foreign-controlled crypto instruments in an increasingly fragmented global payments environment. This move underscores Russia’s efforts to develop financial tools that can operate independently of Western sanctions and restrictions, ensuring continued access to global markets despite international pressures.