Iran launches Bitcoin maritime insurance platform "HormuzSafe," covering the Strait of Hormuz, claiming annual revenue could exceed $10 billion
Original author: Claude, Shenchao TechFlow
DeepOcean Summary: Iran's Ministry of Economy has launched a Bitcoin-based settlement platform for marine insurance called "Hormuz Safe," offering "cryptographically verified insurance policies" to Iranian shipowners and cargo owners transiting the Strait of Hormuz. Iranian state media claims the platform could generate annual revenues exceeding $10 billion.
However, whether the platform is genuinely operational has not been independently verified, and its viability faces serious challenges due to Bitcoin’s high volatility, U.S. sanctions compliance risks, and the controversial background of its behind-the-scenes promoter, Babak Zanjani. This represents Iran’s most prominent attempt to convert its military control of the Strait of Hormuz into a cryptocurrency product.
Iran is attempting to turn one of the world’s most critical maritime chokepoints into a bitcoin-settled insurance market.
According to Bloomberg on May 18, Iran’s semi-official Fars News Agency, citing documents from the country’s Ministry of Economic Affairs and Finance, stated that Iran has launched a Bitcoin-backed marine insurance service called "Hormuz Safe" for Iranian shipping companies and cargo owners seeking to transit through the Strait of Hormuz.
Fars said the plan could generate over $10 billion in revenue for Iran, but did not provide a timeline or operational details.
Since the U.S. and Israel launched airstrikes on Iran on February 28, Iran has effectively closed the Strait of Hormuz. The strait accounts for approximately 20% of global seaborne oil trade and 20% of liquefied natural gas exports during peacetime.
Since then, the Iranian government and the Islamic Revolutionary Guard Corps (IRGC) have sought to formally institutionalize control over this waterway, including the imposition of tolls and other fees. Insurance services are the latest component in their revenue-generating toolkit.
Cryptographic verification of policies, instant Bitcoin settlement
According to a screenshot of the "Hormuz Safe" website shared by Fars, the platform claims to offer "fast, verifiable digital insurance" for Iranian shipping companies and cargo owners. According to Bitcoin Magazine, coverage includes risks such as vessel inspections, seizures, and confiscations, but war damage claims are excluded.
Fars cited the website hormuzsafe.ir, which states that the platform will provide "cryptographically verifiable insurance policies" for cargo passing through the Persian Gulf, the Strait of Hormuz, and surrounding waters, with payments settled in Bitcoin. Coverage begins the moment the cargo is confirmed on the blockchain, and shippers will receive a signed receipt. The website appears to be inaccessible outside Iran.
According to Bitcoin Magazine, Iran’s Ministry of Economy began advancing the insurance program at the end of April (early Ordibehesht in the Persian calendar). In April, Hamid Hosseini, spokesperson for the Consortium of Iranian Oil, Gas, and Petrochemical Exporters, told the Financial Times that shipping companies could pay Hormuz Strait tolls in non-US dollar currencies such as Bitcoin or the Chinese yuan.
Accelerating institutional development: From toll fees to an insurance platform
Hormuz Safe is not an isolated initiative, but the latest component of Iran’s comprehensive institutional framework built around the Strait of Hormuz.
According to Bitcoin Magazine, in March 2026, the Iranian Parliament passed the Hormuz Strait Management Plan, formally legislating the toll system operated by the IRGC since mid-March. Under this framework, the IRGC charges fees to vessels passing through the strait, requiring operators to submit information on vessel ownership, cargo type, destination, and crew details in order to obtain a passage authorization code.
Fees start at approximately $1 per barrel, with maximum charges reaching up to $2 million for fully loaded tankers, and payments are accepted in CNY.
On May 18, Iran's Supreme National Security Council announced the official establishment of the Persian Gulf Straits Authority (PGSA) and launched an official account on X.
According to Euronews, the agency is positioned as the administrative entity responsible for managing traffic in the Strait of Hormuz and collecting tolls, operating in coordination with the IRGC Navy.
Vessels must submit complete information, including ownership, insurance, crew list, cargo declaration, and planned route, via the PGSA official email address; permission to pass will be granted only after approval and payment of fees.
Ebrahim Azizi, Chairman of the National Security and Foreign Policy Committee of Iran’s Parliament, stated on X that only commercial vessels cooperating with Iran will benefit from this mechanism, and parties involved in U.S.-Israel military operations will be prohibited from using the route.
According to Windward intelligence analysis, as of May 18, vessel traffic through the strait remained at only about 38% of pre-conflict levels, with the central Qeshm-Larak anchorage experiencing continuous dark vessel location locks for six consecutive days. Approximately 369 IRGC fast boats are concentrated in a single area about 30 nautical miles northeast of Khasab, indicating a shift from coastal patrols toward the main strait.
Volatility, sanctions risk, and the shadow of fraud
Several analysts have expressed skepticism about the practical feasibility of Hormuz Safe.
Bloomberg notes that, unlike dollar-pegged stablecoins, Bitcoin's price volatility has limited its adoption as a payment method. Foreign shipowners may be reluctant to use this mechanism due to concerns about violating U.S. sanctions on Iran.
Tiger Research senior analyst Ryan Yoon told Decrypt that the platform’s technical and legal feasibility is “highly questionable,” and despite the announced launch, no actual users have been confirmed. Shipping companies using Hormuz Safe risk being “immediately expelled from the global financial system.”
Cake Wallet CEO Vikrant Sharma told BeInCrypto that Bitcoin can reduce some payment friction, but it is not a clean way to bypass sanctions systems. Liquidity on the scale of marine insurance is a limiting factor, activities on public blockchains can be monitored, and any exchange, broker, custodian, or USD-linked counterparty introduces compliance risks.
Sam Lyman, Director of Research at the Bitcoin Policy Institute, explained Iran’s logic from another perspective: the core appeal of Bitcoin is that “no one can freeze it.”
According to Decrypt, since the outbreak of the war, numerous crypto "safe passage" scams have emerged. Scammers impersonate Iranian authorities, demanding Bitcoin or USDT from ship operators. Hormuz Safe appears to be an independent, state-level initiative, but the line between real and fake is extremely blurred in the current environment.
The bigger picture: Iran is building a dollar-free maritime financial system
According to Bitcoin Magazine data, Iran’s cryptocurrency ecosystem is estimated to reach $7.8 billion in 2025, with transactions linked to the IRGC accounting for approximately 50% of the country’s total crypto volume (as of Q4 2025). The Iranian government has used mined Bitcoin to fund imports and hedge against losses in oil revenue, with reported national mining costs at around $1,300 per coin.
CoinDesk’s analysis is quite precise: the insurance architecture is more clever than simply charging tolls. Shippers are not paying for passage on paper, but rather purchasing insurance and financial responsibility certificates for navigation in waters Tehran claims are secure. This allows Iran to monetize its geographic advantage in a more palatable way.
The comment by Hacker News user everdrive received high upvotes in the tech community: The post-WWII U.S.-led world order was partly built on the U.S. military’s maintenance of open international waters. It is astonishing that Iran has successfully challenged the U.S. on this level. Everyone knew Iran had the capability to shut down the straits when cornered, but the fact that this outcome occurred still exposes serious policy failures.
Regardless of whether Hormuz Safe can ultimately operate at scale, the signal it sends is clear: Iran is building a comprehensive administrative and financial infrastructure around the Strait of Hormuz, transforming military blockades into a sustainable sovereign revenue mechanism, with Bitcoin serving as the settlement layer.
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