The Russian Ruble-backed Stablecoin A7A5 Surpasses $100 Billion in Transfers Within a Year, Now Market Cap Shrinks by 96%

July 29th, Blockchain analysis firm Elliptic announced that the Russian state-owned bank-backed ruble stablecoin A7A5, has transferred over $100 billion in funds in its first year of operation, being used to bypass Western sanctions. Currently, the token's size has shrunk by 96%.

Elliptic pointed out that although A7A5's smart contract can still function normally, the stablecoin only holds real value when it can be redeemed. After the United States, the United Kingdom, and the European Union imposed sanctions on the network behind A7A5, the token's on-chain funds have been explicitly tagged as "sanctioned."

Mainstream exchanges commonly conduct compliance checks on deposit addresses, utilizing on-chain analysis tools to trace related fund flows and freeze or intercept funds. Even if A7A5 itself cannot be frozen, as long as its fiat onramps and trading gateways are blocked, its actual circulation capability will still be severely restricted.