A7A5, a Ruble-Pegged Stablecoin, Passes an Independent Audit Confirming 100% Fiat Backing

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A7A5, the ruble-pegged stablecoin launched under Kyrgyzstan’s crypto laws, has completed an independent audit.

A7A5, the ruble-pegged stablecoin launched earlier this year, has passed an independent audit confirming full fiat backing. The testiomonium is part of A7A5’s ongoing efforts to maintain complete transparency and ensure maximum protection for its token holders.

The new audit was completed by Kreston Bishkek, a licensed member of the Kreston Global network operating in over 100 countries. It covered A7A5’s financial and reserves report for the past period.

As of the audit date, the audit firm has fully attested that “the entire volume of stablecoins is fully backed by fiat assets in Russian rubles.” This confirms A7A5’s 1:1 backing, despite previous claims by crypto analytics firms that the token may be over-issued or lack sufficient reserves.

While third-place crypto Tether is still yet to undergo an audit like A7A5 has done, A7A5 is set to undergo quarterly audits to maintain its 1:1 ruble peg and ensure maximum transparency. It is also programmed for a dynamic supply adjustment, with A7A5 tokens being minted only after matching ruble deposits are confirmed.

The total volume of A7A5 coins in circulation is monitored and updated in real-time to reflect the verified reserves.

Ruble-pegged token with yield potential

A7A5 is being launched in stages by Old Vector, a company operating in the Kyrgyz Republic, and is subject to the approval and supervision of the relevant government institutions in accordance with the legislation of the Kyrgyz Republic.

It is one of the first tokens to be launched under Kyrgyzstan’s new digital asset legislation, which came into effect earlier this year. The goal of the law is to regulate the rapidly growing cryptocurrency market in a bid to attract foreign investment into the country and expand the use of new technologies in the financial sphere.

The new law, which was part of a broader move by Kyrgyzstan to expand its presence in the global financial markets, also placed restrictions on cryptocurrency use in Russia, leading to a ban on the use of cryptocurrencies for payments by individuals and organizations.

However, despite the restrictions imposed by the Central Bank of the Russian Federation, the government of Russia is currently piloting a program for cross-border cryptocurrency payments with several countries, including Vietnam, Cuba, and Uzbekistan.

As one of the main trading partners of the Kyrgyz Republic, Russia is a key economic factor for the Central Asian nation.

The new crypto legislation is part of a broader program of economic reforms being undertaken by the government of Kyrgyzstan.

In addition to being pegged to the ruble, A7A5 is also designed to generate yield for its holders. This is achieved by leveraging the high interest rates in Russia, with the fiat reserves earning interest at the Russian Central Bank’s refinancing rate.

The project documentation notes that 50% of interest from bank deposits is paid out within 24 hours of receipt, while another portion is used for operational costs and reserve growth. A portion of interest income from decentralized finance strategies is also used to top up the treasury and provide a secondary source of yield for A7A5.

The Russian bank where the ruble reserves are held is selected, in part, for its correspondent banking access to Kyrgyzstan, enabling smoother financial integration between the two countries.

Early adoption and performance

The token is listed on Meer Exchange, a fully licensed and regulated digital asset exchange in Kyrgyzstan, and trades in several pairs, including USDT and other major coins.

The listing on a fully licensed platform means A7A5 trades in a format that meets the required standards of supervision and compliance in accordance with the legislation of the Kyrgyz Republic. This also applies to the exchange’s own procedures for KYC, AML and other pertinent financial regulations.

According to the issuer, A7A5 will also be listed on decentralized exchanges in the near future.

The project envisions A7A5 being used in DeFi protocols for lending, liquidity provision, and as collateral for synthetic ruble-based assets. Liquidity pools could offer users additional yield opportunities, while the token’s high returns may support carry trade strategies by pairing it with lower-yield stablecoins.

A7A5 is designed to maintain a 1:1 peg to the ruble through a combination of market forces and regulatory oversight. The token is fully backed by an equal value of ruble deposits, which are held in a separate account and are not used for any other purpose.

As such, A7A5 is not subject to the same risks as other stablecoins, which may be affected by changes in the cryptocurrency market or the value of underlying assets.

Stablecoins have come under scrutiny in recent times, with some analysts warning that they could be over-issued or lack sufficient reserves. However, A7A5 is committed to maintaining