Russia could create its own national stablecoin as recent sanctions against the nation, including wallet freezes on Russia’s Garantex exchange, have pushed Russia into creating their own digital currency.

According to Reuters, Osman Kabaloev, Deputy Director of the Financial Policy Department at Russia’s Finance Ministry, has reportedly urged the government to adopt alternative digital payments. 

A Russian stablecoin similar to Tether’s USDT has been proposed and that which would open doors for greater liquidity in regard to Russian trade and global commerce. 

Russia could create its own stablecoin to combat sanctions

Russia’s state media outlet TASS spoke to Osman Kabaloev, deputy director of the financial policy department at Russia’s Finance Ministry, on the matter.

For Kabaloev, being able to secure a digital payment alternative for the Russian ruble would be advantageous, similar to how Tether’s USDT token allows for easy digital payments. 

From Kabaloev:

“Stablecoins remain unrestricted within our legal experimentation zone, but recent developments highlight their potential risks.”

Recently, the U.S. Department of Justice, working with Finland and Germany, froze Russian crypto assets held on Garantex exchange in March 2025.

Reasons for the freeze come from claims that the exchange processed over $96 billion in criminal funds since 2019. On March 6, Tether blocked $27 million worth of USDT tokens linked to Garantex, forcing the exchange to a standstill. 

Going further back, Garantex was sanctioned by the  U.S. Treasury’s Office of Foreign Assets Control due to potential money laundering activity on the exchange.

Russian Civic Chamber member Evgeny Masharov proposed that a Russian ruble-backed stablecoin be created and controlled by the state to avoid foreign interventions in crypto.

US stablecoin Acts to pass in 2025

The news comes as stablecoins are becoming more integral to cryptocurrency adoption by institutions, with many businesses seeing the positives of dollar-backed crypto tokens.

President Trump aims to get the STABLE and GENIUS Acts for pro-crypto regulations passed soon, which will allow US-based businesses to adopt crypto with ease. 

In Q1 2025, the total stablecoin market cap reached $218 billion, with Bitwise calling for a stablecoin summer in 2025 as multiple banks and institutions are set to utilize or launch their own stablecoins.