Iran Turns to USDT as Crypto Becomes Alternative Channel Under U.S. Sanctions

Iran is increasingly using cryptocurrency, particularly Tether’s USDT stablecoin, to facilitate cross-border payments as U.S. sanctions continue to restrict the country’s access to conventional financial channels. Nearly $10 billion in crypto reportedly moved through Iran last year, according to Coin Bureau.

The development comes as Iranian authorities ease some foreign-exchange restrictions, allowing businesses greater flexibility to use crypto for international transactions. Coin Bureau also cited Iran’s largest cryptocurrency exchange as handling more than 50% of the country’s crypto inflows in 2025.

Recent reporting provides additional context to the growing role of digital assets in Iran’s financial system. The Financial Times reported that Iran has eased foreign-currency controls to allow exporters to repatriate funds through informal channels, including cryptocurrency platforms, while businesses can use export revenues to finance imports.

Nobitex Dominates Iranian Crypto Flows

Iran’s crypto markets has also drawn increased attention from U.S. authorities. The U.S. Treasury Department’s Office of Foreign Assets Control designated Nobitex, described by Treasury as Iran’s largest digital asset exchange, in June 2026.

Treasury said Nobitex processed more than 50% of all Iranian digital asset inflows in 2025 and alleged that the exchange facilitated transactions connected to sanctions evasion and Iranian regime-linked activity. Treasury also said the platform had helped the Central Bank of Iran access hundreds of millions of dollars in stablecoins.

The U.S. government has subsequently expanded its scrutiny of Iranian cryptocurrency infrastructure. OFAC states that Iranian digital asset exchanges fall within the sanctions framework applicable to Iranian financial institutions, while foreign financial institutions can face sanctions exposure for conducting significant transactions involving designated Iranian exchanges.

Tether Freezes Hundreds of Millions in USDT

The growing use of stablecoins has also created a direct enforcement point for U.S. authorities. The Treasury Department has said its actions have resulted in the freezing of nearly $500 million in cryptocurrency linked to the Iranian regime.

Separately, Tether froze approximately $344.2 million in USDT across two addresses associated with Iran’s central bank after OFAC designated the wallets. TRM Labs said the addresses were linked to the Central Bank of Iran and had received roughly $370 million across nearly 1,000 transactions.

The contrasting developments underline the dual role of stablecoins in sanctioned markets: they can provide an alternative mechanism for moving value across borders, while their blockchain-based transactions remain visible and can be targeted by issuers and regulators.

Iran’s continued use of crypto will therefore face increasing scrutiny as U.S. authorities expand sanctions enforcement against digital-asset infrastructure and stablecoin issuers continue cooperating with law enforcement.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.