Iran’s stablecoin strategy is getting worldwide attention amid the wider geopolitical turmoil. In this respect, during the airstrikes of February 28, the Central Bank of Iran halted the trading pair $USDT-toman to decrease currency repricing.
This indicates the systemic significance of stablecoins in the country’s economy. Additionally, the Financial Action Task Force (FATF) has revealed that stablecoins occupied up to 84% of Iran’s illegal crypto volumes during 2025.
$10B Crypto-Led Economy of Iran Undergoes Stress-Test Amid War
In the early days of February 2026, the reports disclosed that the crypto transfer volumes of Iran had touched an approximate $8-$10B in 2025. In this respect, the Central Bank of Iran purchased a minimum of $507M in $USDT over 2025. This denotes a refined plan to circumvent the worldwide banking framework.
The market reports point out that a considerable amount of the crypto activity of Iran was associated with the Islamic Revolutionary Guard Corps (IRGC). Specifically, when Iran underwent US-Israeli strikes on February 28 and the worsening conditions in the Middle East, including the Strait of Hormuz, the internet connectivity of the country plunged by ninety-nine percent.
This caused crypto transfer volumes to slump by 80%, and exchanges jumped into defensive mode, halting withdrawals while entering batch processing.
Iran Leverages Stablecoins as Part of Sanction Evasion Strategy
Along with that, the Iranian Central Bank ordered crypto exchanges to stop the $USDT-toman pair. Subsequently, at the time when trading restarted, the dislocated prices and the shrunken order books disclosed a fragile market outlook without its crucial pair. Even then, while common citizens in Iran lost access amid the blackout, regime-related actors may have kept transacting funds quietly.
Recently, FATF issued a report on stablecoins as well as unhosted wallets, referring to the eighty-four percent of illegitimate crypto volumes during 2025 that included stablecoins. The report clearly pointed toward Iranian actors while also urging issuers to rapidly adopt freeze, deny-listing, and burn capabilities.
As a result, this case underscores the paradox the core of stablecoins, as the same dollar-pegged assets that are primary for legitimate payments across borders have become an instrument for the evasion of sanctions.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
The strengthening of the US dollar suppresses Bitcoin's rebound, and Middle East conflicts may trigger a price decline
The tense situation in the Middle East has triggered a strengthening of the US dollar, putting pressure on Bitcoin and high-risk assets. Analysis indicates that the appreciation of the dollar and high inflation may limit capital inflows into the crypto market. Although Bitcoin experienced a brief rebound, it still faces institutional sell-offs and market weakness. Investors should monitor the dollar trend and market dynamics to assess potential risks.
GateNews1m ago
Israel's weekly war losses amount to the equivalent of 41,300 Bitcoins, causing a huge economic impact.
The Israeli Ministry of Finance estimates that conflicts with Iran cause an economic loss of approximately 9 billion shekels per week, equivalent to 41,300 Bitcoins. If lenient measures are taken, the loss could be reduced to 4.3 billion shekels. Restrictive measures have affected education and public services, highlighting the impact of war on investor confidence. Although Israel does not hold Bitcoin reserves, its crypto market continues to grow, demonstrating the resilience of digital assets.
GateNews21m ago
Netizens want to bet on the "Iranian Rial": it has fallen 90% and will definitely rebound! Is this kind of war gamble worth buying?
The Iranian rial has plummeted over 96% in two months, hitting a record low. If a nuclear agreement is reached with the United States, the rial may have room for a rebound, but purchasing options are difficult and risky. Investors should be aware of U.S. sanctions risks and potential impacts of Iran's currency reforms on exchange rates. Many people are exchanging rial through cryptocurrencies, but caution is advised.
動區BlockTempo33m ago
Iran hints at possibly abandoning its nuclear program and restarting US-Iran negotiations, which may cool down oil prices and gold safe-haven demand. Cryptocurrency attention is rising.
Iran has expressed willingness to negotiate with the United States on the nuclear program and may abandon some nuclear facilities. Market expectations for easing Middle East geopolitical risks have increased. Although the negotiations are expected to stabilize the global energy market, experts still warn to proceed with caution, paying attention to the uncertainties of the agreement and market dynamics. Improved geopolitical relations could stimulate the cryptocurrency market, and investors should remain cautious.
GateNews41m ago
Trump publicly pressures to advance the "Clarity Act," Ripple CEO Brad Garlinghouse supports crypto regulation reform
On March 6th, Ripple CEO Brad Garlinghouse supported Trump's tough stance on the "Clarity Act," calling on the U.S. Congress to push for the bill to clarify the regulatory framework for digital assets. Currently, due to disputes over stablecoin yield models, the bill is stalled in the Senate, affecting market sentiment.
GateNews45m ago
Vancouver's "Bitcoin City" plan faces setbacks: officials suggest abandoning municipal BTC holdings plan
Vancouver city government faces resistance to plans to incorporate Bitcoin into its financial system. An official report recommends that the city council abandon the proposal, mainly due to legal restrictions and financial risks. Although supporters believe Bitcoin has potential as a store of value, the city council has not yet decided whether to proceed with this plan.
GateNews1h ago
