Russia’s Ministry of Finance has signaled its intention to develop a state-owned stablecoin following the freezing of $30 million in USDT.
In response to the freezing of around $30 million in USDT held in wallets linked to Russia, the Finance Ministry is reportedly exploring the idea of issuing nationally controlled stablecoins pegged to foreign currencies, according to Reuters.
The freeze imposed by Tether is said to have disrupted payment flows for sanctioned Russian entities, highlighting the need for domestic alternatives to conduct international transactions.
Osman Kabaloev, Deputy Head of the Financial Policy Department at the Ministry of Finance, stated:
“This event has definitely forced a reassessment of the country’s reliance on third-party stablecoin infrastructure. The recent freeze suggests we must consider creating domestic instruments similar to USDT, possibly pegged to other currencies.”
His comments follow confirmation from Russian exchange Garantex that Tether had blocked wallets on its platform worth over 2.5 billion rubles (about $30 million), after the exchange was added to the EU sanctions list.
According to Reuters, the government is now considering state-backed alternatives that would offer the same utility as current stablecoins, but with legal protections from Western oversight.