As the European Union intensifies its efforts to curb Russian cryptocurrency operations, a new digital token connected to Russia’s vast state-owned defense entity has begun operating quietly. RubX, a stablecoin tied to the ruble and announced by Rostec in the previous year, quietly launched on July 17. Initial transactions became available on Telegram, starting on July 24, marking its entry into the market.
According to blockchain analysis by the Kyiv Independent, RubX is now being used by Russian businesses to bypass Western banking restrictions. Since access to SWIFT and correspondent banking has been disrupted, defense companies and others are relying more on crypto for international transactions. This is particularly evident in dealings with countries like China.
RubX is the second stablecoin that represents the Russian ruble. It joins A7A5, a token managed by Promsvyazbank (PSB), a major financial institution serving the defense sector. However, since its January 2025 launch, A7A5 has drawn significant attention, especially after its trading routes were disrupted in April of the same year due to a reported cyberattack and increased scrutiny from Western authorities.
The European Union has already imposed sanctions on RubX, which legally prohibits EU entities from engaging in transactions with the token. Rostec-linked investor Dmitry Shumaev, in comments to the Russian state media TASS, stated the decision 'was no surprise.' He also viewed it as a sign of the project’s potential. Shumaev mentioned that RubX includes 'built-in safeguards against sanctions risk,' but did not elaborate on how these mechanisms work.
How the Tokens Work in Practice
Experts believe that the primary function of ruble-based tokens like RubX is to act as a bridge to U.S. dollars. When these tokens are converted into dollar-based stablecoins like Tether, they are used for extensive procurement and to bypass sanctions. This transition plays a vital role in enabling illicit financial activities.
Blockchain analyst Richard Sanders told the Kyiv Independent that tokens such as RubX are merely another tool in what he describes as Russia’s 'laundering arsenal.' He emphasized that the core of these activities remains centered on Tether, a widely used dollar stablecoin. Tether claims to freeze accounts under U.S. Treasury sanctions, but despite its policies, the token is still extensively used for illegal financial flows.
So far, RubX has seen only moderate trading volumes. Its presence on notable platforms includes the global exchange BitMart and the Finzy financial services app. The Kyiv Independent discovered that one RubX wallet holds 8.88 billion tokens, valued at approximately $110 million. Another wallet, also uncovered by the Kyiv Independent, contains an impressive 91 billion tokens, potentially valued at up to $1.13 billion.
Users are directed through the Finzy Telegram channel to the app to make purchases and conduct swaps. Neither Finzy nor Rostec provided responses to inquiries from the Kyiv Independent regarding the project.
