Exploring Alternatives to SWIFT (Part 2): Moscow's Hidden Financial Network - Garantex, Cryptex, and the Shadow Settlement System

Russia's Shadow Financial Network: After being cut off from SWIFT, Russia has developed a "shadow financial machine" utilizing platforms like Garantex, Cryptex, and Exved to facilitate cross-border trade and evade sanctions through a combination of gray market activities and cryptocurrency trading.

Role of Garantex and Cryptex: Garantex serves as a central hub for processing illicit funds and stablecoin liquidity, while Cryptex acts as a backup for laundering operations, allowing criminal entities to bypass regulatory scrutiny and maintain financial flows.

Innovations in B2B Settlements: The Exved and A7/A7A5 systems represent state-backed initiatives aimed at redefining international payments for Russian businesses, utilizing stablecoins and blockchain technology to create a compliant facade for cross-border transactions.

Geopolitical Implications: This layered financial infrastructure not only supports Russian businesses in evading sanctions but also serves as a tool for political influence operations, raising concerns about the emergence of a shadow financial system outside traditional dollar and SWIFT frameworks.