Kathmandu— Russia has developed its own major cryptocurrency stablecoin, A7A5, through the state-owned Promsvyazbank (PSB), becoming the largest such digital currency not pegged to the US dollar. Launched in response to international sanctions following the conflict in Ukraine and disconnection from the SWIFT network, the A7 payment system began operating in October 2024 and now processes approximately 2,000 money transfers daily, representing around 20% of all foreign transactions by Russian companies. The A7A5 stablecoin, made available to customers in September 2025, is tied one-to-one with the Russian ruble.

Growth and Market Share

Since its launch, A7A5 has seen a turnover of nearly $140 billion. According to PSB chairman Pyotr Fradkov, while it represents a small portion of the overall stablecoin market—estimated at around $312 billion globally—it is currently the largest non-dollar alternative. Approximately 99% of all stablecoins are linked to the US dollar, leaving only 1% for other currencies; within that 1%, A7A5 holds a capitalization of about $570 million.

Competitive Landscape

The next largest non-dollar stablecoin is euro-linked and valued at $440 million, followed by a Brazilian stablecoin with a capitalization of just $52 million. Fradkov indicated that further development of A7A5 could allow the A7 system to capture 10% of the global stablecoin market in the future. Achieving this goal would extend its use beyond domestic transactions and into international trade.

Regulatory Response

Fradkov suggests the success of A7A5 is evidenced by its inclusion on EU sanctions lists as an independent infrastructure project. He believes this demonstrates that competition now exists not only between individual financial instruments but also between entire payment ecosystems.

PSB continues to develop the A7 system and A7A5, aiming for increased market share and broader international application of Russia’s alternative payment mechanism.

(With inputs from RT)

Originally published on abcnews.com.np.