Russia’s two largest unsanctioned metal producers have begun using Tether’s USDT stablecoin for cross-border transactions with Chinese clients and suppliers. This shift emerged as the U.S. Treasury Department warned of secondary sanctions on lenders aiding sanctions evasion.
According to top executives, these companies now use USDT and sometimes settle through Hong Kong, citing slower alternatives and risks of frozen overseas accounts. Although the trade volume is unclear, Tether has not commented publicly.
Chainalysis co-founder Jonathan Levin noted that cryptocurrencies’ transparency limits their use for evading sanctions, as blockchain networks expose illicit activities. Despite this, sanctioned regions like Venezuela also increased USDT usage amid tighter U.S. sanctions.
This strategic move underscores the evolving tactics of sanctioned regions to navigate Western restrictions, highlighting cryptocurrencies’ role in global trade dynamics.
