Russian Digital Payment System Processes $6B Despite US Sanctions
A Russian digital payments network linked to state banks has processed over $6 billion through its stablecoin, A7A5, since August despite new U.S. sanctions.
- Token Reissue: Over 80% of A7A5 tokens were destroyed and reissued in new wallets following sanctions on affiliated exchanges. This action severed ties between frozen assets and new tokens, allowing the continuation of transactions.
- State-Backed Structure: Supported by Promsvyazbank and VEB, Russia’s development bank, A7A5 is issued by Old Vector in Kyrgyzstan and backed by the ruble. Classified as a digital financial asset by Russian regulators, it's eligible for trade payments.
- Strategic Expansion: The platform aims to grow internationally to support Russian exports, testing Moscow's strategy to develop independent payment infrastructure outside Western control.