A senior finance official in Russia has advocated for the establishment of a national stablecoin in response to the US government’s freezing of wallets associated with the sanctioned crypto exchange Garantex. This action has intensified discussions in Moscow about the potential risks tied to reliance on foreign-backed digital assets.
The initiative for a Russian stablecoin arises as the global adoption of stablecoins continues to surge. A joint study conducted by Artemis and Dune revealed that the number of active stablecoin wallets grew by over 50% year-on-year, with the total market capitalization surpassing $200 billion in early 2025.
Russia Calls for Homegrown Stablecoin Amid Rising USDT Concerns
Osman Kabaloev, the deputy director of the Financial Policy Department at Russia’s Finance Ministry, remarked that recent incidents underscore the urgency for domestic alternatives to widely-used stablecoins like USDT. He stated:
“We do not impose restrictions on the use of stablecoins within the experimental legal regime. But recent developments have shown that this instrument can pose risks for us.”
Kabaloev suggested that Russia might explore developing a stablecoin pegged to alternate currencies, potentially the ruble, to lessen vulnerability to international pressures. This recommendation follows a collaborative US, German, and Finnish operation executed on March 6, 2025, which closed domains associated with Garantex, claiming the platform processed over $96 billion in illicit funds since its inception in 2019.
On the same day, Tether froze assets worth $27 million in Garantex-related wallets, effectively ceasing the exchange’s operations. Garantex was initially sanctioned by the US Treasury’s Office of Foreign Assets Control in April 2022 due to alleged money laundering activities. Despite the crackdown, reports suggest that Garantex has surfaced again under a new name, utilizing ruble-backed stablecoins to transition funds to a newly established exchange.
In a related proposition, Evgeny Masharov, a member of the Russian Civic Chamber, recommended the formation of a state-supported crypto fund comprising assets confiscated from criminal activities. Additional lawmakers, too, are pushing legislation to categorize cryptocurrency as property in criminal cases.
In 2024, stablecoin transaction volumes exceeded $27.6 trillion, surpassing the combined transaction volumes of Visa and Mastercard by 7.7%.
VanEck: China and Russia Use Bitcoin in Energy Trades Amid De-Dollarization Shift
An investment report from VanEck indicates that China and Russia are utilizing Bitcoin for certain energy transactions, indicating a significant transition away from the US dollar in international trade. Matthew Sigel has observed that Bitcoin is gaining traction as a neutral and decentralized mechanism for global settlements.
Join the conversation on Twitter here with Kashif Raza regarding the call for a government-issued crypto stablecoin.
