Why Does Iran Prefer Stablecoins as the Passage Currency for the Strait of Hormuz?
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Why Does Iran Prefer Stablecoins as the Passage Currency for the Strait of Hormuz?
It remains critically important to continuously and publicly identify and verify the wallet addresses of the Islamic Revolutionary Guard Corps (IRGC).
Navigating Web3 tides with focused insightsBy Chainalysis
Translated by AididiaoJP, Foresight News
Executive Summary
On April 1, 2026, Bloomberg reported that the Islamic Revolutionary Guard Corps (IRGC) of Iran had begun imposing transit fees on vessels passing through the Strait of Hormuz. Shipping operators negotiating with Iranian authorities typically face a starting fee of approximately $1 per barrel of oil, payable in either Chinese yuan or stablecoins through an intermediary and licensing system linked to the IRGC.
Subsequently, a Financial Times report published on April 8, 2026, cited Hamid Hosseini, a spokesperson for the Iranian Association of Oil, Gas & Petrochemical Exporters—a trade association closely aligned with the Iranian state—who stated that during the ceasefire period, shipping companies wishing to transit the Strait of Hormuz would be required to pay a $1-per-barrel fee in cryptocurrency.
Although the statement specifically referenced Bitcoin, we assess that Iran is more likely to prioritize stablecoins over Bitcoin for collecting such fees—consistent with the Iranian regime’s well-documented, long-standing pattern of using stablecoins at scale to facilitate illicit trade and circumvent sanctions.
This latest development represents an extension of the IRGC’s rapidly expanding cryptocurrency footprint. According to U.S. Office of Foreign Assets Control (OFAC) sanctions designations, the U.S. National Counterterrorism and Counterintelligence Center’s seizure list, and leaked data from the Central Bank of Iran, IRGC-linked crypto activity accounted for roughly half of Iran’s total crypto ecosystem in Q4 2025, representing billions of dollars in transaction volume.
Shipping companies paying the Strait of Hormuz transit fee to Iran face significant sanctions exposure, given Iran’s comprehensive sanctions designation by the United States and the broader international community. This generally means businesses must obtain specific licenses or approvals from relevant authorities before engaging in transactions with sanctioned entities or jurisdictions.
As events unfold, regulators, law enforcement agencies, and stablecoin issuers all have critical roles to play in identifying IRGC-controlled wallets and their counterparties—and freezing illicit assets.
A New Frontier in State-Level Cryptocurrency Adoption
Bloomberg reported on April 1, 2026, that the Islamic Revolutionary Guard Corps (IRGC) of Iran had begun levying transit fees on vessels seeking safe passage through the Strait of Hormuz. Shipping operators are required to submit detailed information—including vessel ownership, flag state, cargo, destination, and crew—to an IRGC-linked intermediary. Upon submission, they negotiate a fee—typically starting at around $1 per barrel of oil—payable in either Chinese yuan or stablecoins. In return, they receive a permit code and an escorted transit route, colloquially known within the industry as the “Iranian toll booth.”
Subsequently, the Financial Times reported on April 8, 2026, quoting Hamid Hosseini, spokesperson for the Iranian Association of Oil, Gas & Petrochemical Exporters—a trade association that works closely with the Iranian state—stating that tankers must notify Iranian authorities via email about their cargo, after which Iran will inform them of the amount due in “digital currency.” He explicitly named Bitcoin and noted that tankers would have “a few seconds to complete payment in Bitcoin to ensure it cannot be traced or seized due to sanctions.”
If implemented, this measure would mark a historic milestone: the first known instance of a sovereign state mandating cryptocurrency payments for passage through an international waterway. Beyond the immediate crisis, Tehran’s move sets a dangerous precedent for future international commercial activity. If successful, this mechanism would serve as a proof-of-concept easily replicable by other heavily sanctioned actors—and extendable to other strategic maritime chokepoints and arteries vital to global trade.
Though novel-sounding, this concept fully aligns with the Iranian regime’s extensively documented and rapidly growing use of cryptocurrency—particularly stablecoins—to facilitate large-scale trade in weapons, oil, and commodities.
Why We Expect Stablecoins—not Bitcoin—to Be Used
Hosseini explicitly named Bitcoin, and on the surface, this choice appears logical: Bitcoin is fully decentralized and, unlike stablecoins such as USDT, cannot be frozen by its issuer. However, based on our deep analysis of the Iranian regime’s on-chain behavior, we assess that if this initiative proceeds, stablecoins will ultimately become the preferred instrument for large-scale fee collection.
Historically, the Iranian regime has favored stablecoins because they are pegged to the U.S. dollar, ensuring store-of-value functionality and providing the liquidity needed for large-scale adoption. As the Iranian rial continues its steep depreciation and the Iranian economy remains in prolonged crisis, the regime’s reliance on stablecoins has taken on heightened strategic significance. By contrast, Bitcoin experiences regular price volatility. And while Bitcoin lacks an issuing authority—and therefore cannot be seized or frozen by intermediaries—it is primarily used by Iranian cyber actors for ransomware payments and malicious cyber operations—distinct use cases from the high-volume, commercially oriented cash flows associated with Strait of Hormuz transit fees.
According to existing records, the IRGC’s on-chain activities—including oil sales, weapons procurement, and funding for proxy groups—rely overwhelmingly on stablecoins as the medium of exchange. The Strait of Hormuz is one of the world’s most critical maritime chokepoints, through which approximately 20% of global oil and liquefied natural gas shipments pass. Given that Persian Gulf tankers currently carry roughly 175 million barrels of crude and refined oil, even applying the fee to a fraction of this volume could generate urgently needed fiscal revenue for the Iranian regime amid its most severe threat in decades.
The IRGC’s Crypto Empire: Billions on-Chain
To understand why cryptocurrency-denominated transit fees for the Strait of Hormuz represent a logical next step for the Iranian regime, one must appreciate the scale and sophistication of the IRGC’s existing on-chain operations.
As documented in our earlier analysis of Iran’s $7.8 billion crypto ecosystem, IRGC-linked on-chain activity has grown steadily, reaching roughly half of Iran’s total crypto ecosystem by Q4 2025. Funds received by IRGC-associated addresses exceeded $2 billion in 2024 and surged to over $3 billion in 2025. These figures represent conservative estimates, as they only include addresses identified through OFAC sanctions designations and the U.S. National Counterterrorism and Counterintelligence Center’s seizure list—not the full universe of shell companies, financial intermediaries, and wallets controlled by the IRGC.
Sanctions Implications for Shipping Companies
For the global shipping industry, Iran’s crypto-based transit fee presents substantial compliance risks. Iran faces comprehensive U.S. sanctions, meaning U.S. persons and entities are prohibited from engaging in virtually all transactions involving the Iranian government, its agencies, and instrumentalities. Shipping companies seeking passage through the Strait of Hormuz—whether paying in cryptocurrency or any other form—risk severe penalties. Moreover, amid the fragile ceasefire, not all oil companies, shipping firms, and multinational enterprises may be prepared to transport or insure cargo through the strait.
Typically, businesses must apply to the U.S. Department of the Treasury for specific licenses or approvals before transacting with sanctioned entities or conducting trade in sanctioned jurisdictions. Making cryptocurrency payments to entities linked to the Iranian state without such authorization would likely constitute a sanctions violation, exposing companies to enforcement actions, fines, and reputational harm—effectively providing material support to Iran’s war efforts and its network of regional proxies.
The fact that these payments are denominated in cryptocurrency—not traditional fiat currency—does not alter their underlying sanctions implications. However, unlike traditional payment channels, blockchain’s inherent transparency enables regulators and compliance teams to track fund flows nearly in real time—helping identify entities interacting directly or indirectly with sanctioned wallets.
Looking Ahead: Opportunities to Disrupt Implementation
Continued public identification and verification of IRGC wallet addresses remain critically important. Each new sanctions designation and seizure listing further enriches the on-chain map of the IRGC’s financial infrastructure—increasingly restricting the regime’s access to mainstream liquidity.
Opportunities to disrupt implementation span both the public and private sectors:
- Stablecoin issuers technically possess the ability to freeze assets held in wallets identified as controlled by—or linked to—the IRGC or other sanctioned entities. Should the Iranian regime indeed adopt stablecoins for collecting Strait of Hormuz transit fees—as we anticipate—this would constitute a direct intervention point.
- Law enforcement agencies can leverage blockchain intelligence to trace transit fee payments backward through the IRGC’s money laundering infrastructure, potentially uncovering new nodes and cash-out exit points within the network.
- Regulators should continue publicly identifying and verifying IRGC wallet addresses, thereby expanding the known boundaries of the Iranian regime’s on-chain activity.
- Exchanges, financial institutions, and shipping companies’ compliance teams should continuously monitor risk exposure related to Iranian services and IRGC-linked wallets—especially given that this new fee mechanism may introduce novel capital flows into mainstream crypto ecosystems.
As Iran continues integrating cryptocurrency into its national fiscal operations—from oil sales and proxy financing to maritime transit fees—blockchain analytics is essential for maintaining visibility into these fund flows and empowering the international community to mitigate risks and generate actionable intelligence.
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