Russia is considering the launch of a national stablecoin similar to Tether (USDT), according to statements from the Ministry of Finance.
This development comes after the freezing of approximately $30 million worth of USDT linked to sanctioned Russian wallets, prompting officials to explore alternatives to dollar-pegged digital assets.
Finance ministry proposes a domestic stablecoin
The Russian Ministry of Finance is exploring the possibility of issuing a stablecoin tied to a currency other than the U.S. dollar. The idea was presented during a recent banking forum, where Osman Kabaloev, deputy head of the Financial Policy Department, addressed the growing concerns over reliance on foreign-issued stablecoins. Kabaloev noted that recent incidents demonstrated the risks associated with using USDT and highlighted the need for Russia to establish internal tools for digital settlements.
He confirmed that stablecoin use is currently allowed under the country’s experimental legal regime for cryptocurrencies. This framework enables companies to use digital assets for international trade, helping them bypass global financial restrictions. However, using cryptocurrencies like Bitcoin for domestic payments remains prohibited under current Russian law, with the Central Bank opposing broader crypto legalization.
Garantex wallets blocked by Tether
The push for a Russian alternative to USDT gained momentum after the U.S.-based issuer of Tether froze digital assets belonging to Garantex, a Russian cryptocurrency exchange. According to Garantex, over 2.5 billion rubles in stablecoins were blocked in March. The platform criticized the action, calling it part of a wider campaign against the Russian crypto sector.
Following the freeze, Garantex temporarily suspended its services, including cryptocurrency withdrawals. In a public statement, the exchange warned that USDT held in other Russian wallets could also be at risk. The exchange has been scrutinized for its alleged ties to illegal activity and has faced international sanctions.
Sanctions and regulatory pressure on Russian crypto platforms
The United States, together with the European Union has imposed sanctions on Garantex due to its criminal and Russian government connections. The U.S. Treasury accused Garantex of letting its system be used for criminal transactions that totaled more than $100 million which included darknet market and cybercrime group activity. In February, the European Union implemented extra Russia sanctions by banning all business activities involving Garantex. The authorities seized the exchange website during their initiative to enhance regulatory control over Russian digital financial operations. The recent stablecoin freeze and ongoing regulatory challenges have accelerated discussions in Russia about creating a more secure, locally issued digital asset for international trade.