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Iran launches Bitcoin-backed insurance for Hormuz shipping

Iran launches Bitcoin-backed insurance for Hormuz shipping

Money Moves

Tehran's 'Hormuz Safe' sells Bitcoin-priced maritime cover; Treasury has now designated the platform, its insurer and the exchange that moved the money

September 17th, 2026: Treasury sanctions the exchange that moved the tolls

Overview

Updated Oct 23

Iran started selling Bitcoin-priced insurance for Strait of Hormuz crossings in May. Treasury has since designated the platform, the state insurer behind it and a Tehran exchange it says moved the money to the Revolutionary Guard.

Iran has charged tankers $1 million to $2 million to cross, and Treasury says part of that ran through BitBank from June. Two ship insurers, West of England and the Swedish Club, have told members that buying Iranian cover could breach their own policies.

Why it matters

Shipowners who pay Iran's toll risk US secondary sanctions and losing their own cover; Treasury has named the exchange that moves the money.

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Key Indicators

$10B
Projected annual revenue
Fars News, citing economy ministry documents, said Hormuz Safe could bring in more than $10 billion a year. The outlet published no evidence for the figure.
20%
Global oil through Hormuz
Share of world petroleum and gas that normally transits the strait each day.
$1M–$2M
Toll per tanker
What Iran has charged vessels for safe passage through the strait in 2026, according to CoinDesk. Treasury says part of the money moved through BitBank.
$344M
USDT frozen in April
Tether stablecoins immobilized after OFAC linked two wallets to Iran's central bank.
694%
Sanctioned crypto inflows 2025
Year-on-year jump in cryptoassets received by sanctioned entities, per Chainalysis.

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People Involved

Seyed Ali Madani-Zadeh
Seyed Ali Madani-Zadeh
Iran's Minister of Economic Affairs and Finance
Minister whose department built Hormuz Safe; the platform was designated in July 2026

Organizations Involved

Iranian Ministry of Economic Affairs and Finance
Iranian Ministry of Economic Affairs and Finance
Government ministry
Built Hormuz Safe; the insurer that issues its policies was designated in July 2026

Iran's main fiscal and financial regulatory body, now building crypto-settled commercial infrastructure.
US Department of the Treasury – OFAC
US Department of the Treasury – OFAC
Federal Agency
Designated Hormuz Safe, its insurer and the exchange BitBank in 2026

The US agency that designates sanctioned persons and enforces secondary sanctions on foreign firms transacting with them.
Islamic Revolutionary Guard Corps (IRGC)
Islamic Revolutionary Guard Corps (IRGC)
Paramilitary force
Named by Treasury as the beneficiary of Hormuz Safe's toll revenue

Iran's elite military and economic force, currently policing transit through the Strait of Hormuz.
HM
HormuzSafe Marine Services Authority
Digital insurance platform
Designated by OFAC on July 29, 2026

Iranian digital insurance service for vessels transiting the Strait of Hormuz, sanctioned by Treasury in July 2026.
PG
Persian Gulf Marine Insurance Company (PGMIC)
State-linked insurer
Designated by OFAC on July 29, 2026

Iranian insurer that issues the marine policies Hormuz Safe sells, approved by the designated Persian Gulf Strait Authority.
BI
BitBank
Cryptocurrency exchange
Designated by OFAC on September 17, 2026

Tehran crypto exchange that Treasury says moved IRGC money and Hormuz Safe's toll collections.

Timeline

July 2019 September 2026

11 events Latest: September 17th, 2026 · 2 months ago Showing 8 of 11
Tap a bar to jump to that date

  1. Treasury sanctions the exchange that moved the tolls

    Latest Enforcement

    OFAC designates the Tehran exchange BitBank and its developer, Pishtaz Simorgh Electronic Trade Company, saying BitBank moved hundreds of millions of dollars in Bitcoin to the IRGC and processed fees collected by Hormuz Safe.

  2. Iran's central bank lets traders settle in crypto

    Financial

    The Central Bank of Iran lets exporters and importers pay for cross-border trade with Bitcoin and Tether held outside the official currency system, as the rial falls past 2 million to the dollar.

  3. Treasury designates Hormuz Safe and its insurer

    Enforcement

    OFAC names HormuzSafe Marine Services Authority and the Persian Gulf Marine Insurance Company, saying the pair run an IRGC-backed scheme that forces vessels to buy coverage to transit the strait.

  4. Iran launches Hormuz Safe

    Financial

    Fars News reports the Economy Ministry has begun selling Bitcoin-settled transit insurance through hormuzsafe.ir, with the outlet putting possible revenue above $10 billion a year.

  5. Trump withdraws US strait guidance

    Policy

    The White House says the US Navy will no longer escort commercial ships through Hormuz.

  6. Tether freezes $344M tied to Central Bank of Iran

    Enforcement

    Stablecoin issuer immobilizes USDT in two wallets after OFAC designates them as Iranian central bank property.

  7. US imposes naval blockade on Iran

    Conflict

    Pentagon halts ships moving to and from Iranian ports after the Islamabad Talks collapse.

  8. Hormuz closure begins

    Conflict

    US-Israeli air war on Iran opens; the IRGC mines the strait and stops commercial transit.

  9. OFAC designates Zedcex and Zedxion

    Enforcement

    US Treasury sanctions two UK-registered crypto exchanges for routing transactions to IRGC-linked networks.

  10. First state-run crypto import settled

    Financial

    Iran's Ministry of Industry confirms a $10 million import order paid entirely in cryptocurrency, calling it a sanctions workaround.

  11. Iran legalizes Bitcoin mining

    Policy

    Tehran formally licenses crypto mining, using cheap electricity to generate dollar-equivalent revenue under sanctions.

Scenarios

1

OFAC sanctions Hormuz Safe operators, adoption collapses

Likely Resolves by End of 2026

Discussed by: Insurance Journal, Atlantic Council, DWF Group sanctions practice

US Treasury adds Hormuz Safe and identified Iranian wallets to the Specially Designated Nationals list. Major non-US underwriters, P&I clubs, and port authorities refuse to recognize the coverage. Without a single Lloyd's market or Asian club willing to honor the certificate, shipowners stay away and the platform becomes a propaganda asset rather than a working market.

2

Chinese and Russian shippers adopt Hormuz Safe at scale

Possible Resolves by May 18, 2027

Discussed by: CoinDesk, Bitcoin News, Insight Threat Intelligence

Non-Western fleets already moving sanctioned Iranian oil treat Hormuz Safe as a cheap, fast alternative to absent Western coverage. State-linked Chinese and Russian shipping lines, plus shadow-fleet operators, buy policies in volume. Tehran publishes transit and revenue numbers showing the system is functional.

3

Hormuz Safe never processes a verifiable policy

Possible Resolves by Nov 18, 2026

Discussed by: Bloomberg, Al Jazeera analysts, Insurance Journal

Bitcoin volatility, claim-payout mechanics, and the strait's near-total closure leave the platform without real customers. Coverage of the launch fades within weeks. No major news outlet ever publishes confirmation of a paid claim or a recognized insurance certificate.

4

Hormuz reopens to commercial traffic, undercutting demand

Uncertain Resolves by End of 2026

Discussed by: House of Commons Library briefing, Al Jazeera, NPR

A ceasefire or negotiated reopening restores Western insurance markets and naval escorts. Lloyd's underwriters resume war-risk coverage. Hormuz Safe loses its core selling point because shippers can buy normal policies and transit safely.

5

No P&I club honors a Hormuz Safe certificate

Likely Resolves by Q1 2027

Discussed by: West of England, the Swedish Club

Two protection-and-indemnity clubs told members in August and September 2026 that taking Iranian coverage for a Hormuz transit could breach their own policies. If no club or Lloyd's syndicate agrees to recognize a Hormuz Safe certificate, a shipowner who buys one carries uninsured risk, and the product stays limited to fleets already outside Western cover.

6

Treasury severs Hormuz Safe's cash-out route

Possible Resolves by Q2 2027

Discussed by: US Treasury, OFAC

Treasury says Hormuz Safe used BitBank to move the fees it collected to the regime. The September 17 designation of BitBank, with secondary sanctions attached, makes any bank or exchange handling those flows a target. If Iran cannot convert the tolls, the scheme raises far less than the $10 billion a year Fars projected.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

December 2014

Russia's SPFS payment network (2014-present)

After Crimea sanctions threatened Russia's SWIFT access, the Central Bank of Russia launched the System for Transfer of Financial Messages. It now connects 177 financial institutions across 24 countries, plus the domestic Mir card network handling nearly half of Russian card payments.

Then

Russian banks kept settling domestic and friendly-country transactions after Western messaging was cut in 2022.

Now

SPFS is functional but expensive and limited, and most non-bloc banks still refuse to join. Researchers conclude it has not replaced SWIFT.

Why this matters now

Tehran is trying the same playbook with crypto rails instead of bank messaging. Russia's experience suggests such systems work inside a friendly bloc but struggle to pull in neutral or Western counterparties.

2018-2024

Venezuela's USDT oil sales (2018-present)

After US sanctions on PDVSA, Caracas launched the state-issued Petro token (which failed) and then shifted to receiving oil payments in Tether's USDT stablecoin. Reports indicate the state oil firm has been settling Chinese and Indian crude shipments in USDT since 2024.

Then

Venezuela kept selling oil despite secondary sanctions, with crypto absorbing payments banks would not touch.

Now

OFAC and Tether have since frozen sanctioned wallets, raising the cost of using stablecoins for blocked entities. Bitcoin-only rails, like Hormuz Safe's, are harder to freeze but more volatile.

Why this matters now

Caracas proved a state can route oil revenue through crypto. Tehran is attempting the same with an insurance product wrapped around a strategic chokepoint.

July 2019

Iran's Bitcoin mining program (2019-present)

Iran's energy ministry licensed industrial Bitcoin miners and required output to be sold to the Central Bank. By 2021 the country accounted for an estimated 4.5% of global Bitcoin hashrate, generating hundreds of millions of dollars in foreign-equivalent revenue.

Then

Iran earned roughly $1 billion in mining revenue before grid strain forced rolling shutdowns of licensed miners.

Now

Mining showed Tehran the ceiling of crypto income at the protocol layer and pushed the regime toward higher-value services like trade settlement and insurance.

Why this matters now

Hormuz Safe is the logical next step. After earning Bitcoin through mining, Iran is now trying to charge Bitcoin for access to one of the world's most strategic waterways.

Sources

(17)
+11
Bloomberg CoinDesk Insurance Journal Al Jazeera Bitcoin.com CCN Wikipedia UK House of Commons Library Chainalysis TRM Labs Elliptic NPR US Department of the Treasury The Cryptonomist Spendnode CoinDesk CoinDesk