The Iranian government's adoption of cryptocurrency payments for ships traversing the Strait of Hormuz is a strategic move that aligns with its existing trade networks designed to circumvent sanctions. This development has been confirmed by a spokesperson for Iran's Oil, Gas and Petrochemical Products Exporters' Union, who stated that bitcoin is now an accepted payment method. Previous reports indicated that stablecoins were being used to facilitate the passage of select oil tankers, with a fee of $1 per barrel of oil, which can amount to significant revenue given that the largest tankers carry up to two million barrels.
The formalization of a cryptocurrency-based toll system appears to be a bold move, yet it is consistent with the Iranian regime's, particularly the Islamic Revolutionary Guard Corps' (IRGC), increasing reliance on cryptocurrency for cross-border commerce over the past few years. This is especially true for Iranian oil sales, as highlighted by data from blockchain analytics firm Chainalysis. Andrew Fierman, Head of National Security Intelligence at Chainalysis, noted that it is not surprising to see this type of trade occurring via cryptocurrency, given the nature of the transactions. The Strait of Hormuz, a critical sea channel through which approximately a fifth of the world's oil and liquefied natural gas passes, presents a lucrative opportunity for such activities.
An examination of sanctioned activities over the last year and a half reveals a complex and expanding network utilizing crypto wallets. In December 2024, a U.S.-sanctioned, IRGC-affiliated financier linked to the Iran-backed Houthi regime was involved in Iranian oil sales to Yemen, with transactions totaling over $178 million in a single year, facilitated through cryptocurrency addresses. In April 2025, a broader network of Houthi financiers purchased weapons and commodities from Russia, with their cryptocurrency addresses included in a sanctions designation that accounted for nearly a billion dollars in activity over the course of the year.
The Houthis, an Iran-backed armed group controlling much of northern Yemen, have also proposed imposing a second chokepoint on the world's oil and gas shipping trade at the Bab-al-Mandeb channel, which connects the Red Sea to the Gulf of Aden. According to Fierman, the picture that emerges is one of IRGC-affiliated networks utilizing crypto at a commercial scale to facilitate cross-border trade. This system is more complex and established than the simple use of a handful of wallets; it involves a network of cryptocurrency wallets that the regime uses to facilitate cross-border activity.
Accepting payments in crypto makes transactions easier than using the traditional banking system, and with sufficient liquidity, there is no need to rely on cryptocurrency exchanges. The IRGC's broad adoption of cryptocurrency, especially stablecoins, as a payment mechanism for cross-border trade contrasts with North Korea's approach, where the primary goal is to steal and launder billions of dollars in crypto. The Iranian regime, comprehensively sanctioned since 1979, faces significant challenges in accessing U.S.
dollar-pegged assets due to individual sanctions on almost every bank, making it difficult to engage in international trade. The ability to obtain a U.S. dollar-pegged asset through stablecoins creates a mechanism that allows the Iranian regime to trade globally with willing counterparts, bypassing the traditional banking system. In Iran, while the Rial is the official currency, the Toman is universally used in daily transactions, with one Toman equivalent to 10 Rials.
Tom Keatinge, Founding Director of the Centre for Finance and Security at the UK defence think tank RUSI, agrees that USD-backed stablecoins have become an increasingly important payment mechanism for the Iranian regime, enabling it to evade sanctions and Western banking controls. Keatinge notes that the use of stablecoins may expose users to Western regulatory intervention, but evidence suggests this risk is low.
Lee Reiners, a lecturing fellow at Duke University's Financial Economics Center, suggests a novel approach the Iranian regime could take to further its sanctions-skirting goals with stablecoins. Reiners proposes that Iran could demand payment in a specific stablecoin, potentially creating a situation where the U.S.
would have a financial incentive to lift sanctions, allowing Iran to impose tolls without restrictions.