The ruble-pegged stablecoin A7A5 has been recognized as a digital asset under Russian law and will soon facilitate Russia’s cross-border settlements.
The approval will allow Russian companies to use the cryptocurrency for payments in international trade deals, circumventing financial restrictions imposed by the West.
Russia to employ ruble-backed stablecoin in settlements
Russian firms doing business with foreign partners can now legally use the A7A5 crypto as a means of payment, when exporting and importing goods.
The Russian ruble-linked currency has become the first stablecoin accepted as a digital financial asset (DFA), as defined in current legislation, the business news portal RBC reported, quoting an announcement by the project’s team.
According to a dedicated law, which went into force in early 2021, DFAs represent tokenized versions of real-world assets. Unlike decentralized cryptocurrencies and tokens, these are based on private, not public blockchains.
Russian DFAs are only issued by “information system operators” authorized by the Central Bank of Russia (CBR), such as Sberbank and Alfa-Bank, or the platforms Atomize and Tokeon, among others.
The A7A5 tokens were first minted in February 2025 in Kyrgyzstan. Their market capitalization already exceeds 41 billion rubles (close to $500 million).
On Tuesday, the head of the A7A5 project, Leonid Shumakov, was quoted stating:
“The A7A5 stablecoin has already become a convenient and effective tool for cross-border settlements using blockchain.”
He is convinced the stablecoin can be scaled up further and offer solutions that will “bring significant positive effects for individuals, companies, and the economy as a whole.”
Sanctioned Russian bank and its entities underpin A7A5 payments
A7A5 transactions are processed by the Tokeon digital asset platform, which is part of the PSB Group. Formerly known as Promsvyazbank, PSB is a state-owned Russian bank, placed under sanctions.
The crypto is advertised as backed by deposits at the PSB. Western governments allege it’s being used by Russian actors to bypass measures restricting Moscow’s ability to finance its war in Ukraine.
To utilize A7A5 in foreign trade transactions, a Russian company would have to register as an investor on the Tokeon platform and buy stablecoins. The recipients of the payments will get tokens on either the Tron or the Ethereum blockchain, the RBC report detailed.
Pilot settlements have been successful, unveiled Olga Myamlina, deputy chair of PSB Bank. And according to Igor Egorkin, CEO of Tokeon, the initiative has been supported by the Russian government.
The stablecoin was reportedly created by A7, a Russian company, majority-owned by a fugitive Moldovan oligarch with a Russian passport, Ilan Shor.
However, it’s currently issued by a Kyrgyz-registered entity called Old Vector, which claims the project is now “fully independent.”
Both have been sanctioned alongside other entities linked to A7A5, such as the Kyrgyzstan-based crypto exchange Grinex, alleged successor of the Russian Garantex, shut down in a U.S.-led operation in March.
Around the time the latest sanctions were enforced, the currency briefly lost its peg to the Russian fiat.
According to the issuer’s announcement, the stablecoin is now compliant with existing Russian regulations and has been allowed to circulate as a digital financial asset in Russia, despite its status as a “foreign digital right” (FDR), or a DFA issued abroad.
The news about the regulatory approval for A7A5 comes after, earlier in September, financial authorities in Moscow indicated their intention to regulate stablecoins and securities based on digital assets. It also follows calls to utilize crypto in the development of the country’s economy.
While transactions with cryptocurrencies, especially their use as a means of payment domestically, remain largely prohibited, an “experimental” legal regime allows Russian firms to employ them in cross-border payments.
According to a recent statement by the Kremlin’s business advisor, Boris Titov, Russia’s foreign trade settlements with cryptocurrency reached $12 billion in the first half of 2025.
