Iran’s central bank accumulated at least 507 million dollars worth of USDT during April and May 2025 as part of efforts to support the national currency amid mounting economic pressure. Blockchain analytics firm Elliptic traced the activity to wallets linked with high confidence to the Central Bank of Iran, showing purchases executed through a mix of domestic channels, regional intermediaries, and public blockchains. Transactions were primarily settled using Emirati dirhams before being converted into USDT on the TRON network, allowing Iran to gain exposure to dollar pegged liquidity while bypassing traditional banking restrictions. The accumulation coincided with a sharp depreciation of the rial, which reportedly lost around half of its value within an eight month period. Stablecoins offered faster settlement, easier access to dollar linked assets, and insulation from local currency volatility at a time when access to foreign reserves and correspondent banking remained severely constrained.
Elliptic’s analysis shows that a significant portion of the USDT initially flowed through Nobitex, Iran’s largest domestic crypto exchange, where it could be held, traded, or converted into rials. This routing suggests the reserves were intended not only for external settlement but also to inject liquidity into the local market during periods of stress. However, transaction patterns shifted in mid 2025 following a major security breach at Nobitex that resulted in the loss of roughly 90 million dollars in digital assets. After the incident, USDT movements increasingly relied on cross chain bridges, moving from TRON to Ethereum and then through decentralized exchanges and offshore platforms. This change extended the lifespan and complexity of the flows while reducing reliance on a single domestic exchange. The evolving structure highlighted both adaptability and growing operational risk as scrutiny increased.
Despite attempts to diversify routes, blockchain transparency ultimately limited the effectiveness of these strategies. Public ledgers enabled investigators to trace wallet clusters, transaction timing, and settlement behavior across networks. In June 2025, Tether blacklisted several wallets associated with Iran’s central bank, freezing approximately 37 million USDT. Additional reporting later indicated broader crypto usage by Iranian state linked entities over multiple years. These actions underscored the dual nature of stablecoins as both a tool for financial resilience and a system subject to enforcement at key chokepoints. While USDT provided temporary relief from currency instability and settlement barriers, the visibility of on chain activity exposed reserve building efforts to external monitoring, resulting in partial disruption and highlighting the limits of stablecoin based monetary strategies under sanctions.
