State-owned company Rostec will launch a ruble-linked token, called RUBx, and promises its own payment platform.

Who nowadays doesn't want their own stablecoin? Indeed, do not underestimate the firepower of the Russian war machine.

Cryptocurrencies are gaining traction again in Russia, now with the state-owned arms manufacturer Rostec planning to launch its own stablecoin, called RUBx, according to Russian state media. The digital token will be backed by rubles and will be available on the Tron blockchain.

The TASS news agency was the first to report the information, citing Alexander Nazarov, Deputy General Director of Rostec, who stated that the token will be backed one-to-one with rubles.

"Each RUBx is backed by real obligations in rubles," Nazarov told TASS. "This is legally established."

The report adds that the Central Bank of Russia has approved the project, which will allow businesses and individuals to move money.

Rostec, better known for manufacturing armaments — such as aircraft and defense systems — also produces medical equipment and automotive engines. And now, crypto tokens. The company also plans to launch a payment platform called RT-Pay, utilizing Russia's banking infrastructure.

Tron is the blockchain behind TRX, the eighth largest digital currency by market value, currently at $26.8 billion. The Tron network is popular as a means of payment for stablecoins, as it allows for the quick and cheap transfer of these digital tokens — usually in the DeFi space, where users connect permissionlessly and anonymously.

The main stablecoins, such as USDC and USDT, are available on the Tron network, as well as on other blockchains like Ethereum and Solana.

The moment of stablecoins

Stablecoins are popular digital tokens that are backed by stable fiat currencies, such as the dollar, euro, or, in this case, the ruble. There are also stablecoins backed by gold, although they are less common.

The proposal is to allow crypto traders to carry out quick transactions — such as buying Bitcoin and other digital assets — without needing to use traditional banking systems. Stablecoins are also popular for payments and sending international remittances, as it is faster and cheaper to transfer funds via crypto than through banks or transfer services.

Stablecoins have recently gained traction in the mainstream, with large companies like Meta and Amazon, as well as major banks like Bank of America and Revolut, showing interest in issuing their own tokens. The U.S. state of Wyoming is set to launch its own stablecoin in August. And the list keeps growing.

Experts have already said they expect a flood of stablecoins — possibly thousands — entering the market after the approval of favorable legislation in the United States. The reason? Stablecoins move billions, and companies like Circle, the issuer of USDC, make billions — practically passively — by investing the dollars that back their tokens in U.S. Treasury securities that earn interest.

Now, Russia seems ready to join the race — and this is not its first foray into the crypto sector. The country has been using cryptocurrencies to circumvent sanctions from the U.S. and Europe imposed after the invasion of Ukraine. Cryptocurrency mining was also legalized in the country last year.

President Vladimir Putin has also spoken about Bitcoin: at a public forum last year, he questioned who could stop Bitcoin and other electronic payment systems. The answer? “No one,” he said.