Russia and Iran are reportedly working together to launch a cryptocurrency backed by gold, with the idea the "stablecoin" could replace the US dollar for payments in international trade.

The two sanction-hit countries want to issue a "token of the Persian region" for use in cross-border transactions, Russian news agency Vedmosti reported Monday. The plan is to launch it in a special economic enclave in Astrakhan in southern Russia, which already handles Iranian shipments.

Those payments are typically done in government-issued currencies such as the US dollar, Russian ruble and Iranian rial. 

But the joint project will only be able to move forward once Russia's market for digital assets is fully regulated, according to a top Moscow lawmaker. In September, the Bank of Russia accepted the need to legalize crypto for international payments to soften the impact of financial sanctions, but has yet to clarify its plans.

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China, for another, has started to push for the yuan to replace the dollar in oil deals, given its increased trade with Russia after it invaded Ukraine. The rise of the so-called petroyuan could spread its influence across Asia for crude transactions. 

Meanwhile, Russia and China have joined forces on another de-dollarization project. In June, President Vladimir Putin said Russia was looking to develop a new reserve currency with other BRICS nations