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A7A5, a Russian ruble-backed stablecoin, has rapidly gained prominence by facilitating over $9.3 billion in transactions on Grinex, a crypto exchange linked to the sanctioned Garantex platform.
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Despite Grinex’s denials of direct ties to Garantex, evidence suggests it absorbed a significant portion of Garantex’s user base, leveraging A7A5 as a key transactional instrument.
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Elliptic founder Tom Robinson noted, “Garantex users with outstanding balances at the time it was shut down could have these balances credited to new accounts set up on Grinex,” highlighting the continuity of operations under a new guise.
A7A5 stablecoin’s $9.3B transaction volume on Grinex reveals evolving crypto dynamics amid sanctions, with 24,000 holders and a $151M market cap spotlighting its growing influence.
A7A5 Stablecoin’s Market Footprint and Holder Base
Launched in Kyrgyzstan earlier this year, A7A5 has quickly established itself with approximately 24,000 holders, according to blockchain data from Etherscan and Tronscan. The stablecoin’s market capitalization stands near $151 million, supported by roughly 12 million tokens in circulation, primarily traded on the decentralized exchange Uniswap.
In addition to pairing with Russia’s national currency, A7A5 is actively exchanged against major stablecoins such as Tether’s USDT and even traditional US dollars, as per updates from Grinex’s official Telegram channel. This diversified trading activity underscores A7A5’s growing liquidity and acceptance within crypto markets.
Backing the stablecoin is a 1:1 reserve of Russian ruble deposits held at Promsvyazbank, a Moscow-based bank currently under sanctions from the US, UK, and EU due to its involvement in Russia’s defense sector. This connection raises important considerations regarding regulatory scrutiny and the stablecoin’s operational framework.
Transaction Concentration and Usage Patterns on Grinex
The Financial Times reports that the staggering $9.3 billion in A7A5 transactions on Grinex originated from only 124 wallets, suggesting a highly concentrated user base. Analysts from Elliptic have observed that many token movements follow repetitive, fixed patterns, indicating potential use in internal banking or settlement processes rather than widespread retail trading.
This transactional behavior implies that A7A5 currently serves a specialized cohort of actors or services, possibly linked to legacy Garantex users or institutional entities leveraging the stablecoin for specific financial operations.
Grinex’s Position Following Garantex’s Sanctioned Closure
Grinex has publicly distanced itself from Garantex, despite widespread speculation about its role as the sanctioned exchange’s successor. A Grinex spokesperson stated that the platform “capitalized on market opportunities after the closure of Garantex as part of its growth strategy,” emphasizing a selective onboarding of users with transparent histories.
This strategic positioning allowed Grinex to inherit a “non-toxic” segment of Garantex’s clientele, facilitating continuity in crypto trading activities while attempting to mitigate regulatory risks. However, the overlap in user bases and transactional volumes fuels ongoing debate about the true independence of the two platforms.
Potential Political and Regulatory Implications
Further complicating the narrative, the Centre for Information Resilience (CIR) has linked A7A5 to Ilan Shor, a Moldovan businessman under sanctions and convicted of fraud. Although A7A5 officially severed ties with the Shor-associated A7 project in May 2025, Shor’s appearance promoting A7A5 at the St Petersburg International Economic Forum in June suggests lingering connections.
These associations raise critical questions about the stablecoin’s governance and compliance posture, especially given the geopolitical sensitivities surrounding sanctioned individuals and entities.
Conclusion
The emergence of A7A5 as a significant stablecoin on Grinex highlights the evolving landscape of crypto exchanges operating under complex regulatory pressures. With a concentrated transaction network and links to sanctioned entities, A7A5 exemplifies how stablecoins can serve as both financial tools and instruments within broader geopolitical frameworks. Market participants and regulators alike should monitor these developments closely to understand their implications for crypto market integrity and compliance.
