Summary
- The ruble-pegged stablecoin A7A5 has exceeded $100 billion in cumulative trading volume and is reportedly being used as a means to circumvent economic sanctions.
- A7A5 was issued on the Ethereum and Tron networks, serving as a bridge between the ruble and Tether (USDT), and reportedly processed swap transactions worth about $17.3 billion.
- Elliptic’s report added that A7A5’s daily trading volume has fallen sharply due to tighter sanctions and that the issuer-controlled blocking mechanism is leaving it increasingly isolated within the crypto ecosystem.
An analysis suggests that ruble-pegged stablecoin A7A5 has surpassed $100 billion in cumulative trading volume in less than a year since launch and is being used as a means to circumvent economic sanctions.
On the 22nd (local time), cryptocurrency-focused media outlet CoinDesk reported this, citing a report by blockchain analytics firm Elliptic.
According to the report, A7A5 was issued on the Ethereum (ETH) and Tron (TRX) networks, and about 41,000 addresses have used the stablecoin to date. A7A5 serves as a bridge between the ruble and Tether (USDT), and has processed swap transactions totaling about $17.3 billion on a cumulative basis.
Elliptic said, "A7A5 has functioned as a channel for ruble-based funds to move into the stablecoin ecosystem amid an international sanctions environment," adding that "use cases aimed at sanctions evasion are being identified" in the process.
However, the report added that A7A5’s daily trading volume has recently fallen sharply as sanctions on related infrastructure have tightened since mid-last year. It also assessed that A7A5 is increasingly becoming isolated within the crypto ecosystem—which places a premium on decentralization—because it is designed so that only the issuer can block specific addresses.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
