A rouble-backed stablecoin aiding Russia in bypassing Western payment restrictions saw transaction volumes surge past $40 billion in July. Created by Promsvyazbank and A7, the Kyrgyzstan-based A7A5 is helping Russian businesses evade sanctions via cross-border payments. Elliptic reported a daily transfer of over $1 billion, with a market capitalization tripling to $521 million.

Sweeping Western sanctions post-Russia’s Ukraine invasion have limited Moscow’s trading options. A7A5, a stablecoin launched to facilitate cross-border settlements, enables Russian firms to transact without SWIFT. TRM Labs identified A7A5 as part of a Kyrgyzstan-registered network aiding sanctions evasion and the import of dual-use goods from China.

Elliptic noted a spike in A7A5 volumes and liquidity, with over $41.2 billion transferred to date. TRM Labs corroborated the surge in transactions. A7A5’s market capitalization tripled to $521 million in two weeks, prompting an injection of $100 million in Tether liquidity. Demand for A7A5 to USDT remains high, with liquidity depleting within minutes.

Read more at Yahoo Finance: Transfers with rouble-backed crypto coin pass $40 billion after July spike, researchers say