Key facts
- Rostec, Russia's state defense corporation, has launched a new cryptocurrency called RubX.
- RubX is a ruble-pegged stablecoin that began trading on July 17 and started offering Tether swaps on July 24.
- The European Union had already sanctioned RubX in April as part of its efforts to target Russian crypto markets.
- The token is intended to help Russian importers make international payments, circumventing global banking sanctions.
- Blockchain experts suggest ruble tokens like RubX primarily serve as a channel to convert to dollar stablecoins such as Tether for sanctions evasion.
Russia's state defense corporation Rostec has quietly launched its ruble-pegged cryptocurrency, RubX, amidst escalating European Union sanctions targeting Russian crypto markets. The launch occurred on July 17, with the token later enabling swaps to the dollar stablecoin Tether via Telegram on July 24.
Cryptocurrencies have become a critical tool for Russian importers seeking to make payments abroad, as Western sanctions have severely restricted access to the global banking system. Companies, including those in the defense sector, have reportedly turned to dollar-based crypto tokens for international trade payments, particularly with China.
RubX joins A7A5, operated by Promsvyazbank (PSB), as Russia's second ruble stablecoin, both pegged 1:1 to ruble reserves. However, the EU had already sanctioned RubX in April, prohibiting EU entities from transacting with it. A RubX shareholder, Dmitry Shumaev, stated the sanctions were unsurprising and claimed the token has built-in safeguards against sanctions risk, though details were not provided.
Blockchain expert Richard Sanders noted that ruble tokens primarily function as a payment channel to dollar stablecoins like Tether, which he described as being used for procurement and sanctions evasion on a large scale. He views projects like RubX as part of Russia's broader financial infrastructure for deploying USDT.
RubX has been traded on the crypto exchange BitMart and the financial services company Finzy. Blockchain analysis indicates significant holdings in wallets potentially associated with RubX and Finzy, with one wallet holding approximately $110 million and another up to $1.13 billion in RubX tokens.