Tether in the crosshairs: PSB chairman warns of USDT blocking for Russians at the command of the US
PSB Chairman Pyotr Fradkov has highlighted a key risk for Russian stablecoin holders: issuer Tether Limited retains full control over every issued USDT, regardless of where it is stored. This means any Russian could face a freeze on their funds — even without formal accusations of wrongdoing.
In his statement, the banker emphasized that precedents already exist: major holders from Iran and Russia have had their assets blocked. Moreover, decisions were made not only due to ties to illegal activity, but also at the direct instruction of the US administration. This turns a formally decentralized instrument into an externally controlled asset, fundamentally changing the picture for investors.
The Control Mechanism: Why USDT Is Not as Safe as It Seems
Fradkov explained that the issuer holds power over every token, wherever it may be. Even transferring USDT to a non-custodial or cold wallet does not guarantee protection from blocking by the company. Technical details are not disclosed, but the essence is clear: the circulation infrastructure is entirely under the issuer's control.
According to the banker's estimates, such mechanisms have already been applied in practice. In recent years, significant assets of owners from Iran and Russia have been frozen, and decisions were made not only due to ties to offenses. He separately pointed to the role of US authorities: Tether blocked funds simply at the direction of the US administration.
Fradkov explained this dependence through the structure of reserves. The USDT issuer is among the largest holders of US Treasury bonds, so the peg to the dollar and the American debt market does not disappear. The banker urged against harboring illusions: technology has changed, but dependence remains. Even a modern digital instrument remains fully controlled by the issuer, and the main question is who controls the token's circulation infrastructure.
What This Means for the Russian Market
The warning came amid a rapid decline in USDT supply. The capitalization of the largest stablecoin fell at a record pace in early August, and analysts linked this outflow to investors fleeing risky assets. Fradkov raised the risk topic while promoting an alternative — the ruble stablecoin A7A5. According to his data, the token's turnover has reached nearly $140 billion since launch, and the A7 platform processes up to 2,000 payments per day.
The system's regular clients include 15,000 companies of varying scale, from large exporters to small businesses and individuals. Through A7, private users pay for vacations, treatment, and education abroad. The PSB representative's position aligns with the authorities' stance: Russian regulators this summer called foreign issuers a vulnerable link precisely because of the US's ability to influence coin creators and freeze holders' assets.
At the same time, the state has not completely closed access to dollar tokens. From September 1, 2026, qualified investors will gain a legal opportunity to buy USDT and USDC through domestic licensed platforms, and companies will be able to use them in foreign trade settlements.
My view: Fradkov's statements are not just a warning, but a signal of a systemic shift. The stablecoin market is entering an era where geopolitics matters more than technology. For Russian participants, this means the need for diversification: relying solely on USDT is becoming increasingly risky, and the development of ruble alternatives is not a whim, but an urgent necessity. The only question is how quickly such solutions can scale and gain trust.