Russian stablecoin under review as sanctions reshape market

Russian authorities are rethinking digital currency policy, with a russian stablecoin now under consideration amid rising crypto usage and mounting sanctions pressure.

Bank of Russia reopens debate on fiat-pegged stablecoins

The Bank of Russia will reassess its conservative stance on fiat-linked tokens and examine the feasibility of issuing a domestic stablecoin in 2026. The initiative marks a notable shift for the regulator, which has long opposed such instruments, even as other jurisdictions moved ahead with their own national stable assets.

The plan was outlined by First Deputy Chairman Vladimir Chistyukhin during a conference hosted by Alfa-Bank, Russia’s largest private bank. He acknowledged that, until now, the central bank has rejected proposals for a national stable asset, preferring strict controls over digital money and favoring the development of a digital ruble.

However, Chistyukhin signaled that the regulator is ready to take a fresh look at the issue. Speaking at the Alfa Talk event, held under the banner “Digital Financial Assets: New Market Architecture” and quoted by TASS, he said the central bank would analyze foreign experience before making a final decision.

“We plan to conduct a study this year to reassess the situation,” Chistyukhin said. “Indeed, our traditional position is that this is not allowed but taking into account the practices of a number of foreign countries, we will reassess the risks and prospects here and will also submit this for public discussion.” Moreover, the study is expected to frame options for possible issuance and market integration.

From blanket opposition to regulated crypto markets

The new stance follows a broader transformation in Russia’s approach to cryptocurrencies. For years, the main financial regulator pushed back strongly against open circulation of digital assets, arguing that private coins threatened financial stability. Instead, it focused on promoting a central bank digital currency, the digital ruble.

However, in 2025 the central bank began softening its position. First, it launched an experimental regime for crypto transactions, allowing limited pilot operations. Then, last spring, it permitted investments in crypto derivatives, signaling a willingness to integrate digital assets into the financial system under tight supervision.

Towards the end of December, regulators unveiled a new conceptual framework for comprehensive crypto regulation. The policy paper envisages recognizing decentralized cryptocurrencies like Bitcoin, as well as various stablecoins, as “monetary assets” under Russian law. That said, the framework also seeks to channel activity through licensed entities.

Under the proposed rules, residents would gain broader access to these instruments, including business use cases. Although the Russian ruble is expected to remain the only legal tender, authorities plan to license platforms such as digital asset exchanges. As a result, new crypto-related services would appear in the domestic market, creating formal channels for trading and settlement.

Sanctions environment accelerates domestic stablecoin debate

The renewed interest in a potential russian stablecoin comes as Western governments intensify pressure on Russian crypto transactions. Sanctions authorities are increasingly targeting intermediaries and jurisdictions suspected of helping Moscow route payments outside the traditional banking system.

The upcoming 20th sanctions package under discussion in the European Union places particular emphasis on curbing Russia-linked digital asset flows. In addition, the measures are designed to hit third countries and institutions believed to be assisting Moscow in bypassing restrictions on its financial movements.

For example, the EU is preparing sanctions against two banks in Kyrgyzstan accused of processing crypto-related transfers for Russian clients. Moreover, Brussels is expanding its watchlist to include platforms and service providers associated with ruble-linked digital tokens used in cross-border deals.

Rise of A7A5 and Kyrgyz infrastructure

One major focus for Western regulators is the A7A5 token, a ruble-referenced stable asset with infrastructure outside Russia. The Central Asian state of Kyrgyzstan hosts the issuer of the ruble-pegged coin, which has quickly become a systemically important instrument for cross-border settlement.

The token is issued by Old Vector, a Kyrgyz-registered company, while the project itself was created by the Russian firm A7. This structure has placed the ecosystem and its infrastructure in the crosshairs of Western sanctions, even as Russian users seek alternatives to traditional payment rails.

Launched in early 2025, A7A5 has reportedly processed transactions worth over $100 billion in its first year of operation. According to DeFiLlama, its capitalization now exceeds $500 million, making it the largest non-dollar stablecoin currently on the market. However, this rapid growth has heightened official scrutiny both inside and outside Russia.

Despite the absence of dedicated stablecoin legislation, Moscow’s financial authorities moved in September to categorize A7A5 as a “digital financial asset.” That classification allows Russian companies to use it for international settlements, effectively embedding the token into corporate payment flows. Platforms linked to A7A5 have already been sanctioned by the EU, the U.S. and the U.K., underscoring the geopolitical sensitivity around ruble-linked crypto.

Domestic crypto activity surges despite constraints

While foreign-based instruments draw international attention, onshore crypto activity in Russia is also expanding quickly. The Ministry of Finance recently disclosed that daily crypto turnover by Russian participants has reached 50 billion rubles, or nearly $650 million. Moreover, officials suggest that actual volumes could be even higher when unreported trades are considered.

Usage is no longer limited to sophisticated traders or large corporates. Crypto has been spreading among ordinary Russians as well, who face increasingly tight restrictions on traditional financial channels because of the war in Ukraine. As foreign banks close accounts and new controls on fiat movements appear at home, digital assets offer an alternative route for savings and transfers.

Within this changing environment, a russian stablecoin backed or overseen by the Bank of Russia could serve multiple policy goals. It might give regulators greater visibility over flows that currently move through less transparent instruments, while still enabling international settlements and domestic payments under sanctions. However, any design would have to balance compliance, usability and geopolitical risk.

Outlook for Russia’s stablecoin policy

The forthcoming bank of russia study on fiat-backed tokens is expected to weigh these trade-offs in detail. A key question will be whether a domestically issued asset can compete with private projects like A7A5, which already enjoy significant liquidity and cross-border reach. Another issue will be how to align any new coin with existing digital ruble plans.

Russia’s evolving regulatory concept for digital currencies suggests that the authorities are unlikely to ignore market demand for long. However, the timing, structure and legal status of any new instrument remain open. Policymakers will need to integrate sanctions compliance, international partnerships and domestic financial stability into a coherent strategy.

In summary, Moscow’s reconsideration of stablecoin policy reflects both external pressure and internal market growth. Whether through tighter control of existing tokens or the launch of a new national instrument, Russia appears set to deepen its engagement with crypto-based monetary assets in the coming years.