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7h ago

EU Moves to Sanction Ruble-Backed A7A5 as It Becomes Top Non‑Dollar Stablecoin

The proposed ban would block EU users from direct or third‑party dealings with the $500 million token linked to sanctioned Russian actors.

Eu considers sanctions on ruble backed stablecoin a7a5 linked to sanctioned russian actors
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Overview

  • A7A5’s market cap surged about 250% in late September to nearly $500 million, overtaking EURC and accounting for roughly 40%–43% of non‑USD stablecoins, according to DeFi Llama.
  • On‑chain analyses report more than $6 billion transacted since August sanctions as operators deleted and reissued over 80% of tokens to break links to blacklisted wallets.
  • Russia recently granted the token formal digital financial asset status, enabling official trade settlements through Promsvyazbank, which backs the coin with ruble deposits.
  • EU measures require approval by all 27 member states and accompany scrutiny of banks in Russia, Belarus and Central Asia, following U.S. and U.K. sanctions in August.
  • Investigators say most transaction flows route through Chinese jurisdictions and the network is expanding into Nigeria and Zimbabwe, with A7A5 representatives removed from Token2049 after public criticism.