Tether in the crosshairs: PSB Chairman warns of the issuer's full control over Russians' USDT
A key risk for Russian stablecoin holders has been voiced at the highest level: Tether Limited retains absolute control over every issued USDT, wherever it may be. This means that any Russian holding these tokens could face their freezing at the issuer's discretion—up to a direct order from Washington.
PSB Chairman Petr Fradkov, whose bank is actively developing its own payment infrastructure, emphasized that dependence on foreign issuers is not a hypothetical threat but a reality that has already manifested itself more than once in practice. According to him, the freezing of funds occurred not only against owners involved in illicit activities but also on the direct orders of the U.S. administration. Among those affected were major holders from Iran and Russia.
Why USDT remains under the issuer's control
The freezing mechanism requires no technical complexity. The issuer retains authority over every token, regardless of whether it has been transferred to a non-custodial or cold wallet. Transferring USDT to "self-custody" does not guarantee protection from company intervention—it is merely an illusion of decentralization.
Fradkov reminded that such measures have already been applied. In recent years, significant assets of holders from Iran and Russia have been frozen, with decisions made not only due to holders' ties to illicit activities. He separately emphasized the role of U.S. authorities: Tether froze funds simply at the direction of the U.S. administration, turning a formally private instrument into an externally controlled asset.
Fradkov explained this dependence through the structure of reserves. The company issuing USDT is among the largest holders of U.S. Treasury bonds, so the peg to the dollar and the American debt market remains inescapable.
The banker urged against harboring illusions: technology has changed, but the dependence remains. Even a modern digital instrument, he stressed, remains fully controlled by the issuer, and the key question is who controls the token's circulation infrastructure.
What the banker's words mean for the Russian market
The warning came amid a rapid contraction in USDT supply. The market 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 topic of risks 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 various sizes, from major exporters to small businesses and individuals. Through A7, private users pay for vacations, medical 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 possibility of U.S. influence over coin creators and the freezing of holders' assets. At the same time, the state did not completely close 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 expert view: Fradkov's warning is not mere rhetoric but a signal to the market about systemic risk. As long as USDT remains a "managed" asset, its use as a settlement instrument for international trade carries hidden political costs. The development of national stablecoins and infrastructure like A7 is not a technological choice but a matter of sovereignty in the digital economy.