TLDR
- Iran’s Central Bank bought $507 million worth of Tether’s USDT stablecoin to support the value of the rial.
- Blockchain firm Elliptic tracked the central bank’s USDT purchases through leaked documents revealing systematic accumulation.
- Iran’s strategy aimed to bypass international banking restrictions imposed by sanctions and stabilize the national currency.
- Iranians have increasingly turned to cryptocurrencies like Bitcoin as a hedge against economic instability and inflation.
- Tether’s ability to freeze accounts remains a potential obstacle for Iranian authorities in using USDT for financial operations.
Iran’s Central Bank (CBI) spent $507 million on Tether’s USDT stablecoin, according to a report by blockchain analytics firm Elliptic. The purchases aimed to influence foreign exchange markets and stabilize the value of the Iranian rial, which has fallen sharply in recent months. These findings were based on leaked documents, allowing Elliptic to track the central bank’s cryptocurrency activities.
CBI’s Strategy to Support the Rial with USDT Purchases
Elliptic traced the central bank’s acquisition of USDT by examining blockchain records linked to Iran’s wallet infrastructure. According to their research, the central bank systematically accumulated USDT, totaling at least half a billion dollars. This strategy appears to have been designed to bypass the international banking system and bolster the rial’s value amid severe inflation.
“By acquiring USDT, the CBI hoped to create a financial buffer that could support the rial, which was trading at 1.4 million to one U.S. dollar,” said Tom Robinson, Elliptic’s co-founder.
The use of stablecoins allowed the Iranian government to sidestep traditional banking restrictions imposed by international sanctions. This strategy highlights the growing role of cryptocurrency in countries facing financial isolation.
Sanctions and Cryptocurrency Use by Iran
The United Nations reinstated sanctions on Iran in 2025, targeting the country’s nuclear program. Despite these sanctions, Iran has continued to use cryptocurrency as a tool to circumvent restrictions. In early 2025, blockchain analytics firm Chainalysis reported that U.S.-sanctioned nations, including Iran, had received nearly $16 billion in digital assets, with a significant portion coming from stablecoins.
Robinson emphasized that countries like Iran are increasingly relying on U.S. dollar-pegged stablecoins for sanctions evasion. These assets help repressive regimes create alternatives to the global financial system. He also mentioned that Iran is trying to build a ‘sanctions-proof’ banking mechanism through digital assets.
Iranians Increasingly Turning to Cryptocurrencies
Apart from state-run efforts, Iranian citizens have also turned to cryptocurrencies as a means of protecting their wealth. Following a wave of street protests against the government, there was a marked increase in the use of cryptocurrencies. Bitcoin transactions from Iranian exchanges surged as the country faced inflation and currency collapse.
Chainalysis reported that between December 28 and January 8, the Iranian public showed heightened activity on cryptocurrency exchanges, withdrawing Bitcoin to personal wallets. The surge came just before the government imposed an internet blackout, which further limited access to global financial systems.
While Elliptic tracked the purchases of USDT, the firm could not determine if the Iranian Central Bank still holds any of the stablecoin. A portion of the USDT was reportedly sent to Nobitex, an Iranian cryptocurrency exchange, which was hacked in 2025. As the exchange is compromised, it is unclear whether the central bank can still access the USDT or whether it has already been converted into rial.
Despite Tether’s ability to freeze accounts associated with illegal activities, the company did not confirm whether any Iranian entities had USDT accounts. Tether’s spokesperson stressed their commitment to working with law enforcement worldwide to freeze assets in cases of illicit activity, yet could not comment directly on the situation involving Iran’s central bank.
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