On July 4, in the sanctions-hit crypto market, the A7A5 stablecoin issuer and blockchain analysts clashed over its real usage, as the Russian ruble-backed token claimed heavy DeFi activity while researchers said wallet movements inflated trading volume online.
The dispute is about who controls the truth when money moves through systems built to avoid banks, regulators and public checks. A7A5 says it is a real payment tool for Russian-linked trade. Analysts say it may be a closed network trying to look alive.
A Battle Over Crypto Volume
A7A5, a ruble-pegged token backed by deposits at Promsvyazbank, a Russian bank under Western sanctions, was launched in Kyrgyzstan in early 2025. The project has been described as a Russian stablecoin built to support cross-border payments outside Western financial channels.
The issuer says the token averaged about $205 million in daily trading volume and processed $34.4 billion between January 1 and June 17 this year. Oleg Ogienko, A7A5’s director for regulatory affairs, said most activity happens on decentralized finance platforms, where trades can move directly between wallets.
That claim is central to the fight over DeFi trading volume. In DeFi, users often do not need to identify themselves, and trades do not always pass through centralized exchanges.
This makes activity harder to evaluate, especially when the token is linked to sanctioned markets. Ogienko said major crypto data providers, including CoinMarketCap, CoinGecko and DeFiLlama, rely too much on centralized exchange data.
He called it a generally discriminatory approach, contrary to the principles of the United Nations.
“These outdated principles and metrics do not provide users around the world with objective information about A7A5,” Ogienko told CoinDesk in a Telegram statement.
But blockchain analytics companies are challenging that picture. Chris Keegan, an analyst at TRM Labs, said his firm places A7A5’s average daily volume closer to $75 million, far below the issuer’s figure.
He also said about 34% of observed transaction volume appears to be circular fund movement, where funds move between related wallets and make activity look larger than it is.
“We truly don’t think there is large-scale, authentic usage of A7A5 outside of A7,” Keegan said in an email, referring to the token’s issuer.
The A7A5 stablecoin also shows sharp drops in volume during weekends, according to Keegan. He said this suggests much of the activity may be tied to business-to-business transfers involving the Russia-linked exchange Grinex, rather than open market demand.
Tom Robinson, co-founder of Elliptic, said the token has lost momentum. He said monthly transaction volumes have fallen by more than 90% since January and are down 96% from their peak last year, after sanctions by the US, the EU and the UK, as well as the collapse of Grinex.
“The cherry-picked trading and transaction figures provided by A7A5 are consistent with Elliptic’s analysis,” Robinson said. “However, they conceal the obvious trend: that A7A5 is failing in its goal of enabling Russian sanctions evasion.”
From Sanctions Tool to Payment Rail
The debate around A7A5 crypto comes as Russia looks for new ways to keep trade moving under pressure. The token’s supporters say it can help businesses settle payments faster and cheaper than traditional banking routes, especially when normal channels are blocked.
The wider concern is crypto sanctions evasion. A7A5 was allegedly developed as a way for Russian-linked businesses to move value beyond Western controls. The token was sanctioned last year by the EU, UK and US, placing it deeper inside a restricted financial ecosystem.
The A7A5 stablecoin may still be used inside that network. Sanctions and national security specialist Kaitlin Martin said Western restrictions have kept most global trading venues from listing the token, leaving it largely confined to Russia-linked services.
Still, Martin said users can swap A7A5 into other digital assets through Russia-linked platforms. That could allow funds to enter the wider crypto market and support cross-border payments, including commodities trade.
The issue also connects to Russia crypto sanctions at a political level. Russia recently sanctioned British teenager Alexander Browder after he helped expose the alleged use of A7A5 in funding the war effort against Ukraine.
The 17-year-old wrote a report for The Henry Jackson Society, which Russia’s Foreign Ministry called “defamatory speculations and false information.”
Ogienko argues the project can survive even if sanctions are eased. Donald Trump recently said the end of the war between Ukraine and Russia was “getting very close.” If restrictions are reduced, A7A5 may need to prove it is more than a crisis tool.
“Our stablecoin has a good chance to stay competitive even after the sanctions are lifted,” Ogienko told CoinDesk in Hong Kong. “If you trade with Russia, you need convenient and fast means of settlement.”
The A7A5 crypto pitch is to build direct exchange rails between ruble-backed tokens and other stablecoins without relying on dollar-linked assets such as USDT or USDC.
“The idea is that we can make an exchange rail between your stablecoin and ours,” Ogienko said. “Not using USDT, USDC, U.S. dollars. We just make direct swaps.”
For now, the Russian stablecoin remains caught between technology, politics and trust. Public ledgers show wallet movement, but they do not always prove whether activity is real trade, internal recycling or a message meant to show strength.
The A7A5 stablecoin controversy shows that the real fight is not only over crypto technology. It is over who owns the truth: whether A7A5 is a working backdoor for state-level trade, or a coordinated campaign trying to hide a damaged economy.
Inside Telecom provides you with an extensive list of content covering all aspects of the Tech industry. Keep an eye on our Cryptocurrency section to stay informed and updated with our daily articles.
