In a world where financial markets have become an arena for geopolitical confrontation, the emergence of national stablecoins is not just a technological trend but a powerful weapon. This concerns the ruble-backed stablecoin A7A5, which has become a key tool for bypassing Western sanctions and the SWIFT system. Behind this project stands Moldovan businessman Ilan Shor, whose A7 cryptocurrency network has already processed transactions exceeding $100 billion. These are not just numbers—they are a demonstration of how blockchain is turning into a financial shield for states under pressure.
Shor is a controversial figure. Convicted in his homeland for embezzling $1 billion from three Moldovan banks in 2014, he fled to Moscow, where he reportedly settled next door to high-ranking officials. Instead of fading into the shadows, he launched operations on an international scale, building a cryptocurrency system that allows sanctioned banks to conduct international settlements bypassing traditional channels. Notably, the same technologies—blockchain and artificial intelligence—once seen as symbols of an open global market, are now being used against the West.
From theft to influence: Shor's path
Shor's story is a classic tale of how past financial crimes become the foundation for a new type of influence. His escape to Russia and oligarch-style life reminiscent of the 90s, complete with a villa in an elite suburb and a singer wife flaunting luxury on social media, only underscores the scale of his ambitions. His speech at the Eastern Economic Forum announcing an A7A5 office in Vladivostok was perceived by analysts as a signal of patronage at the highest levels. One Moldovan official called him an "extremely sophisticated operator," noting that the system he created could be used not only to bypass sanctions but also to support sabotage or terrorism.
The mechanics of A7A5: how it works
Technically, A7A5 is nothing revolutionary—it operates on the same blockchain as Tether. However, its key difference is its peg to the ruble rather than the dollar. This makes it immune to Western restrictions imposed on dollar-denominated assets. The mechanics are simple: users hold funds in A7A5 until the moment of transfer, then convert them into USDT and send them instantly. Thus, the ruble stablecoin becomes a bridge between the Russian currency and the global crypto ecosystem, leaving users' assets vulnerable for only a few seconds.
The project quickly gained popularity due to its liquidity, especially amid tightening sanctions. According to blockchain analysts, specific structures back the issuance of A7A5: the company A7, where Shor controls 51%, and PSB, a bank overseeing the defense sector. The financing is led by economist Pyotr Fradkov, whose father is a former prime minister and intelligence chief, and whose brother is a deputy defense minister. This intertwining of business and state indicates that A7A5 is not just a private initiative but an element of state strategy.
Rise and fall: clients and risks
The A7 network is expanding its influence far beyond the post-Soviet space. Last year, the company opened offices in Nigeria and Zimbabwe, planning expansion into other African countries and South America. Clients include Turkey, which pays for Russian gas in cryptocurrency, drone manufacturers purchasing components from China, and several of Russia's wealthiest individuals. By May, A7A5 was estimated to facilitate monthly operations of $8.5 billion.
However, in recent months, the project's position has wavered. Users increasingly fear the freezing of funds at the moment of conversion into USDT, leading to a sharp decline in trading volumes. There is a real risk that wealthy Russians will abandon the use of this currency. But experts see the main danger not in the fate of a specific token but in the precedent it sets. By creating A7A5, Shor has offered a working model for anyone seeking to build a financial system without Western control. Sanctioned regimes in Iran, China, Cuba, or North Korea may well want to issue a similar currency.
According to foreign analysts, Shor's career itself is unprecedented in modern Russia. Few foreigners have managed to "penetrate Kremlin power structures so deeply." His circle plans to expand the sanctions-bypassing business by building a free financial zone and creating a coalition of states dissatisfied with the Western order. That is why the striking success of a scheme that allowed a sanctioned state to trade with the entire world may have consequences extending far beyond the conflict with Ukraine.
My take: A7A5 is not just a stablecoin but the first loud signal that blockchain is becoming a tool of state sovereignty. Western regulators should prepare for such "national" cryptocurrencies to multiply, making it increasingly difficult to counter them with traditional methods. This is the beginning of a new era of financial fragmentation, where digital assets become not merely speculative instruments but a means of conducting geopolitical games.