TLDR
- Russia’s Finance Ministry official suggests developing domestic stablecoins after US authorities froze wallets linked to sanctioned exchange Garantex
- Tether froze $27 million worth of USDT on March 6, forcing Garantex to halt operations
- Deputy director Osman Kabaloev believes internal stablecoin tools could reduce risks
- Russia is making other crypto moves, including proposed legislation to recognize crypto as property
- Global stablecoin market has grown beyond $200 billion with volumes reaching $27.6 trillion in 2024
A Russian finance ministry official has proposed that the country develop its own stablecoins after US authorities and Tether froze assets linked to a sanctioned Russian exchange. This move comes as Russia explores ways to maintain access to digital payment systems while facing international sanctions.
Osman Kabaloev, deputy director of Russia’s Finance Ministry’s financial policy department, stated that recent events have shown that foreign stablecoins “can pose risks” for Russia.
The official’s comments came after Tether froze $27 million worth of USDT on March 6, forcing Russian crypto exchange Garantex to halt all operations.
“This leads us to consider the need to develop internal instruments akin to USDT, potentially pegged to other currencies,” Kabaloev told state-owned news agency TASS on April 16.
Sanctions Impact on Russian Crypto Exchange
The freezing of Garantex-linked wallets followed coordinated action by the US Department of Justice, which collaborated with authorities in Germany and Finland to freeze domains associated with the exchange. US authorities claim Garantex processed over $96 billion worth of criminal proceeds since launching in 2019.
The US Treasury’s Office of Foreign Assets Control first sanctioned Garantex in April 2022 over alleged money laundering violations. The exchange has now reportedly resurfaced under a new name after laundering millions in ruble-backed stablecoins and transferring them to a newly established exchange, according to a Swiss blockchain analytics firm.
Before these blockages, USDT was popular among Russian firms as a payment tool. Russian regulators have allowed the experimental use of cryptocurrencies in international payments, which have become more challenging due to Western sanctions.
The head of Russia’s central bank, Elvira Nabiullina, who opposes using cryptocurrencies for domestic payments, confirmed that Russian firms are actively testing international cryptocurrency payments as part of an experiment.
Russia’s Broader Crypto Strategy
Beyond stablecoins, Russia is making other moves in the cryptocurrency space. Evgeny Masharov, a member of the Russian Civic Chamber, proposed on March 20 to create a Russian government crypto fund that would include assets confiscated from criminal proceedings.
At the same time, other officials are progressing with new legislation to recognize crypto as property for criminal procedure purposes. These steps indicate Russia’s growing interest in cryptocurrency regulation and adoption.
The proposal for Russian stablecoins comes amid massive growth in the global stablecoin market. The total market capitalization has expanded since mid-2023, surpassing $200 billion in early 2025.
A joint report from blockchain analysis platforms Artemis and Dune showed that active stablecoin wallets increased by over 50% in one year. Stablecoins also saw huge adoption in 2024, driven by increased use of bots.
Total stablecoin volumes reached $27.6 trillion in 2024, exceeding the combined volumes of Visa and Mastercard by 7.7%. This growth highlights the increasing importance of stablecoins in the global financial system.
The Russian official’s comments reflect a broader trend of countries exploring state-backed digital currencies and stablecoins. As digital assets continue to gain traction globally, nations under international sanctions may increasingly look to develop their own digital currency infrastructure.
For Russia, creating domestic stablecoins could provide a way to reduce reliance on foreign-controlled digital assets. Such a move would align with the country’s efforts to develop financial tools less vulnerable to international sanctions.
