Tether can freeze any Russian's USDT at the command of the US: banker's warning
A key risk for stablecoin holders in Russia is becoming increasingly apparent: issuer Tether Limited retains full control over every issued USDT, regardless of where the token is stored. In my assessment, this means that any Russian user could face a freeze of funds by a decision made outside the jurisdiction of the Russian Federation. This statement was made by PSB Chairman Pyotr Fradkov, whose bank is actively developing its own settlement infrastructure based on the ruble stablecoin A7.
The banker reminded that such precedents have already occurred—and this concerns not only owners involved in illegal activities. According to him, funds were also frozen on direct orders from the U.S. administration, with major holders from Iran and Russia among those affected.
Why USDT remains under the issuer's control
Fradkov described the freeze mechanism without technical details: the issuer retains authority over every token, wherever it may be. Even transferring USDT to a non-custodial or cold wallet does not guarantee the owner protection from a freeze by the company.
Such mechanisms, in the banker's assessment, have already been applied in practice. In recent years, large assets of owners from Iran and Russia have been frozen, with decisions made not only due to holders' ties to illegal activities.
Separately, the PSB chairman pointed to the role of U.S. authorities. According to him, 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 in place.
The banker urged not to harbor illusions: technology has changed, but the dependence has persisted. Even a modern digital instrument, he emphasized, 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 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 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 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 possibility of the U.S. influencing coin creators and freezing 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 assessment: the signal from PSB is not just a warning but a marker of a systemic shift. As long as the Russian market depends on Tether's infrastructure, it remains hostage to Washington's geopolitical decisions. Developing own stablecoins is a logical step, but its success will depend on liquidity and trust, which cannot be built through administrative methods. Investors should consider this risk when forming their strategy.