A7A5, a ruble-backed stablecoin issued in Kyrgyzstan, has become the world’s largest non‑U.S. dollar stablecoin with a market capitalization of about $500 million, according to data from CoinMarketCap and DefiLlama. The token now accounts for 43 % of the $1.2 billion non‑dollar stablecoin market. In a statement on its Telegram channel, A7A5 said it had “proven that a national digital currency can be not only an alternative to the dollar but also a driver of global change.” The project drew attention this week at the Token2049 conference in Singapore, where its presence prompted questions about sanctions compliance and cross‑border oversight. A7A5’s rapid growth underscores how Russia‑linked digital assets continue to circulate through neighboring jurisdictions despite restrictions from the United States and its allies.
Launch and Early Sanctions
A7A5 was launched in February as a token “backed by a diversified portfolio of fiat deposits held in reliable banks within Kyrgyzstan’s network.” It is pegged 1:1 to the Russian ruble and promises daily passive income equal to half of the interest on the underlying deposits. Initially issued on Ethereum and Tron, the token was marketed as a cross‑chain digital ruble for regional commerce.
Soon after launch, blockchain investigators linked A7A5 to Grinex, a crypto exchange described as a successor to the sanctioned Russian exchange Garantex. In mid‑August, the U.S. Treasury Department announced new sanctions against Garantex and related entities, identifying Moldovan oligarch Ilan Shor as the owner of A7A5’s issuer, Promsvyazbank (PSB), a Russian state‑linked lender already under sanctions.
The United Kingdom also imposed restrictions on several Kyrgyz banks, citing evidence that Russia used A7A5 to circumvent Western financial measures. Both governments said the token formed part of Moscow’s network for bypassing dollar‑denominated payment systems.
Market Surge and Token2049 Spotlight
Despite the sanctions, A7A5’s capitalization remained between $120 million and $140 million for several months before jumping $350 million in a single day on Sept. 25 — a 250 % surge that pushed it ahead of Circle’s euro‑denominated EURC, then valued at $252 million. The spike occurred just days before the project’s team appeared at Token2049, where Oleg Ogienko, A7A5’s director of international development, delivered a presentation on stablecoin adoption.
The token’s presence at the Singapore event drew criticism from industry participants who questioned why a project under U.S. and U.K. sanctions was allowed to promote itself at a global conference. Several attendees called for tighter vetting of sponsors and speakers at crypto gatherings.
On its Telegram channel, A7A5 dismissed the scrutiny, saying the project was “fully transparent” and compliant with Kyrgyz regulations. The organizers of Token2049 did not comment on whether the company’s involvement breached any restrictions.
Chinese and African Links
The London‑based Centre for Information Resilience (CIR) said in a report Monday that “trade with China has emerged as the dominant focus of A7A5’s activities.” The nonprofit cited figures released by the company showing that 78 % of its transactions passed through Chinese jurisdictions as of August 2025. CIR said A7A5 had also opened offices in Nigeria and Zimbabwe, expanding its footprint in African markets with limited access to U.S. dollar liquidity.
“Further research will be needed to understand how funding flows through the organization’s network, the potential role of financial institutions in enabling its operations and any linkages to Russian political interference schemes,” the group said.
A7A5’s global activity, combined with its rapid market growth, has made it a focal point for regulators tracking how stablecoins may be used to move capital beyond Western oversight. Analysts say the case could become an early test of cross‑border enforcement for sanctioned digital assets.
What Comes Next
With a $500 million capitalization, A7A5 has outpaced all other non‑dollar stablecoins but remains largely confined to trading pairs and over‑the‑counter markets in Asia. Western exchanges have avoided listing it. Market data shows daily volumes have spiked since late September, though transparency over reserve holdings remains limited.
For regulators, the challenge is whether sanctions frameworks built for traditional banking can adapt to tokenized assets that operate across multiple blockchains and jurisdictions. For investors, A7A5’s rise illustrates both the resilience of on‑chain liquidity and the difficulty of isolating digital assets from global networks, even under sanctions.