TLDR
- Russia is exploring creating its own stablecoins after Russia-linked digital wallets holding USDT were blocked
- $27 million worth of USDT was frozen on March 6, forcing Russian crypto exchange Garantex to halt operations
- Russian Finance Ministry official Osman Kabaloev suggested these stablecoins could be pegged to other currencies
- Garantex came under EU sanctions and US authorities claimed it processed over $96 billion in criminal proceeds
- The global stablecoin market has grown substantially, surpassing $200 billion in early 2025
Russia is exploring the development of its own stablecoins after Tether froze wallets linked to a sanctioned Russian exchange, according to a senior finance ministry official.
Osman Kabaloev, deputy head of the Russian Finance Ministry’s financial policy department, stated on Wednesday that Russia should create its own stablecoins. This comes in response to the recent blocking of Russia-linked digital wallets holding USDT, a popular dollar-pegged stablecoin.
“The recent blockage makes us think that we need to consider creating internal tools similar to USDT, possibly pegged to other currencies,” Kabaloev said, according to Reuters.
Russian crypto exchange Garantex was forced to suspend operations in March after Tether blocked digital wallets on its platform. The freeze affected more than 2.5 billion rubles ($30.12 million) in assets.
Sanctions Impact
The US Department of Justice worked with authorities in Germany and Finland to freeze domains associated with Garantex on March 6. US authorities claim the exchange processed over $96 billion worth of criminal proceeds since its launch in 2019.
Tether also froze approximately $27 million worth of its stablecoin on the same day. This action effectively forced Garantex to halt all operations, including withdrawals.
The US Treasury’s Office of Foreign Assets Control had previously sanctioned Garantex in April 2022 over alleged money laundering violations. The exchange had reportedly come under EU sanctions as well.
According to a Swiss blockchain analytics firm, Garantex has allegedly resurfaced under a new name. The firm claims the exchange has been laundering millions in ruble-backed stablecoins and transferring them to a newly established exchange.
Russian Crypto Developments
The stablecoin discussion is part of Russia’s broader exploration of cryptocurrencies amid Western sanctions that have made international payments more difficult.
Russian regulators have allowed the experimental use of cryptocurrencies for international payments. Before the blocking incident, USDT was popular among Russian firms as a payment tool.
Elvira Nabiullina, head of Russia’s central bank, confirmed that Russian firms are actively testing international cryptocurrency payments as part of this experiment. However, she has opposed the use of cryptocurrencies in domestic payments.
On March 20, Evgeny Masharov, a member of the Russian Civic Chamber, proposed creating a Russian government crypto fund. This fund would include assets confiscated from criminal proceedings.
Other Russian officials have been working on new legislation to recognize crypto as property for the purposes of criminal procedure legislation.
Global Stablecoin Growth
The global stablecoin market has seen strong growth recently. The total market capitalization has grown since mid-2023, surpassing $200 billion in early 2025.
A joint report from on-chain analysis platforms Artemis and Dune showed that active stablecoin wallets increased by over 50% in one year.
Stablecoins also saw massive adoption in 2024. This was partly driven by the increased use of bots. Total stablecoin volumes reached $27.6 trillion, surpassing the combined volumes of Visa and Mastercard by 7.7%.
Dollar-pegged stablecoins have ballooned in recent years. They have become popular as they help move funds between different cryptocurrencies or into cash.
Their design to maintain a constant value has made them an important tool in cryptocurrency markets. This stability is particularly valuable in a market known for its volatility.
The current situation highlights the tensions between cryptocurrencies’ promise of freedom from central control and the reality of regulatory oversight. As Russia explores developing its own stablecoins, it joins other nations looking to create digital currencies under state supervision.
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