Total control: Tether is capable of freezing any Russian's USDT on command from Washington.
The key point that every stablecoin holder should know today: USDT issuer Tether Limited retains full control over every issued token, regardless of where it is stored. This means that any Russian holding USDT could face a freeze of their funds at the discretion of U.S. authorities. This warning was issued by PSB Chairman Petr Fradkov, whose bank is actively developing its own settlement infrastructure based on the ruble stablecoin A7.
At first glance, cryptocurrency is associated with decentralization and independence. However, in the case of USDT, this is an illusion. Fradkov emphasizes: the issuer holds power over every token, wherever it may be. Even transferring USDT to a non-custodial or hardware wallet does not guarantee protection from a freeze by the company. The freeze mechanism has long been tested in practice — major holders from Iran and Russia have already fallen victim to it.
The freeze mechanism: how it works
The banker did not delve into technical details, but the essence is perfectly clear. Tether, being one of the largest holders of U.S. Treasury bonds, is tightly tied to the dollar system. This structural dependence makes the company vulnerable to pressure from Washington. According to Fradkov, funds were frozen not only due to owners' ties to illicit activity, but also at the direct instruction of the U.S. administration. Formally, a private instrument turns into an externally controlled asset.
This dependence, in his view, will not disappear anywhere. Technologies have changed, but the essence remains the same: a modern digital instrument is fully controlled by the issuer, and the main question is who controls the token circulation infrastructure.
What this means for the Russian market
The warning came amid a record drop in Tether's market capitalization in early August, when investors massively fled risky assets. Fradkov, promoting an alternative in the form of the ruble stablecoin A7A5, notes its growing popularity: the token's turnover since launch has reached nearly $140 billion, and the A7 platform processes up to 2,000 payments per day. The system already has 15,000 regular clients — from large exporters to small businesses and individuals who pay for vacations, medical treatment, and education abroad through A7.
Fradkov's position echoes the sentiments of the authorities: Russian regulators this summer openly 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 view: The situation exposes a fundamental contradiction of stablecoins — their "stability" is achieved at the cost of complete centralization. For Russian users, this means that reliance on USDT as a "safe haven" is extremely risky. The development of national alternatives, such as A7, is not just a trend, but a forced necessity to reduce sanctions and regulatory risks.