Tether keeps everyone on the hook: why Russians' USDT is under threat of blocking at the command of the United States
Issuer control over a stablecoin is not an abstraction but a harsh reality. Tether Limited, which issues USDT, retains full authority over every token, regardless of where it is held. This means that any Russian holder of the asset could face a unilateral freeze of funds. This state of affairs was stated directly by PSB Chairman Petr 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 unlawful activity. According to him, asset freezes have also happened at the direct instruction of the U.S. administration. Among those affected were major holders from Iran and Russia, making the threat systemic rather than hypothetical.
Why USDT remains under issuer control
The freeze mechanism requires no technical complexity. The issuer retains power 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 company-imposed block. This is a key point that many investors still ignore, believing that holding outside an exchange automatically means safety.
Fradkov emphasized that such mechanisms 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 unlawful activity. Separately, the PSB chairman pointed to the role of U.S. authorities: Tether blocked 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 link to the dollar and the American debt market is 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 infrastructure of token circulation.
What the banker's words mean for the Russian market
The warning came amid a rapid decline 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 him, 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 number 15,000 companies of various sizes — from large 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 U.S.'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: The situation once again confirms that "not your keys, not your coins" works even in reverse: the issuer always has leverage. The Russian market is clearly moving toward diversification, but a complete abandonment of dollar stablecoins in the near future is unlikely — their integration into global trade is too deep. The question is only how quickly alternatives like A7 can offer comparable liquidity and trust.