Russia national stablecoinDeputy Head of the Finance Ministry, Osman Kabaloev, has just proposed that the nation develop its stablecoin. This action responds to recent steps by US authorities, including the freezing of wallets connected to the Russian crypto exchange Garantex. Russia is thus currently considering a national digital currency that might operate independently of Tether and the US financial system.
Russia’s Need for a National Stablecoin
Kabaloev emphasised Russia’s need to explore alternatives to Tether’s USDT. Although the nation has not yet limited stablecoin use, he clarified that recent events draw attention to the possible hazards associated with relying too heavily on foreign-issued coins. Kabaloev says Russia might create its stablecoin with greater financial independence and control, linked to a range of currencies.
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Key Quote: “This leads us to consider the need to develop internal instruments akin to USDT, potentially pegged to other currencies,” Kabaloev said in an April 16 interview with TASS.
The Garantex Incident: Trigger for Change
Recent sanctions have stoked the concept of a Russian stablecoin and frozen Russian digital assets. Working with German and Finnish authorities, the US Department of Justice blocked domains associated with Garantex, a Russian exchange reportedly involved in laundering illicit funds, on March 6, 2025.
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Garantex Sanctions: In 2022, Garantex was first sanctioned by the US Treasury for alleged money laundering.
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The Freeze: The US froze $27 million in USDT (Tether’s stablecoin) on March 6, forcing Garantex to halt operations.
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The Aftermath: Despite these setbacks, Garantex has allegedly resurfaced under a new name, according to Swiss analytics firm Global Ledger.
Russian Crypto Fund
Apart from Kabaloev’s stablecoin concept, Russian Civic Chamber member Evgeny Masharov has proposed the establishment of a government-supported crypto fund. Assets seized from criminal cases would be included in this fund, thereby strengthening Russia’s financial system’s independence from outside influences.
Stablecoin Growth: A Global Trend
The market for stablecoins worldwide continues to expand in the meantime. A Q1 2025 Bitwise research report indicates that stablecoins experienced a notable volume increase in 2024, even surpassing Visa’s transaction volume. These are some salient figures from the report:
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Stablecoin Market Growth: The global market capitalisation of stablecoins surpassed $200 billion in early 2025.
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Increase in Active Wallets: Active stablecoin wallets rose by 53% in just one year.
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Future Projections: Standard Chartered forecasts that the stablecoin market value could hit $2 trillion by 2028.
Notable Legislation: The GENIUS Act
The upcoming GENIUS Act in the US is likely to affect the control of stablecoins. This law will provide a clear framework for determining when issuers of stablecoins fall under federal or state jurisdiction. The stablecoin market is poised for significant expansion in the coming years under this emerging control.
