Iran Acquires $507M in Tether’s Stablecoin USDT
In a groundbreaking revelation, Iran’s central bank reportedly acquired $507 million in USDT stablecoins in the past year, according to blockchain intelligence firm Elliptic. This strategic move was aimed at stabilizing the Iranian rial and facilitating international transactions, underscoring the growing relevance of cryptocurrency in global financial systems.
Why Did Iran Turn to Tether (USDT)?
The use of Tether’s USDT stablecoin was driven by two key factors. First, the Central Bank of Iran (CBI) sought to prop up the declining value of the rial by injecting US dollar liquidity into the domestic market. Second, as sanctions restricted access to traditional global banking systems like SWIFT, USDT provided an alternative mechanism for settling international trade.
As noted by Elliptic, Iran used the stablecoin to create a shadow financial system, bypassing sanctions and accessing funds outside traditional U.S.-controlled financial networks. This innovative approach indicates Tether’s role as a reliable, decentralized financial tool for countries combating economic sanctions.
The Operation Behind the Acquisition
Leaked documents revealed that the central bank acquired USDT through two transactions in early 2025. Payments were conducted using UAE dirhams via a broker referred to as Modex, potentially showcasing how cryptocurrency brokers are playing a pivotal role in the global financial landscape.
The USDT was transferred to crypto wallets linked to Iran’s largest exchange, Nobitex. However, after significant setbacks, including a $90 million hack on Nobitex in mid-2025, the CBI pivoted to employing decentralized exchanges and cross-chain services to manage and transfer their funds clandestinely.
Challenges: The Role of Tether and Transparency
While Tether’s blockchain infrastructure was instrumental in helping Iran execute its financial strategies, the transparent nature of blockchain eventually led to the freezing of $37 million in USDT linked to the Iranian central bank in 2025. Tether’s policy of zero tolerance for illicit use demonstrates how transparency in crypto can support sanctions enforcement, enabling effective oversight of financial crimes.
A Tether spokesperson stated, “To date, Tether has collaborated with more than 310 law enforcement agencies across 62 countries and frozen over $3.8 billion in assets linked to criminal activity.” This highlights the dual-edged nature of cryptocurrencies, acting as both a tool for innovation and a potential facilitator of illicit activities.
The Future of Sanctions and Stablecoin Use
Iran’s decision to leverage USDT for stabilizing its economy and international trade marks a pivotal moment in the intersection of geopolitics and blockchain technology. However, the case also emphasizes that cryptocurrencies’ transparency and programmability can act as deterrents to unlawful activities.
For financial institutions or individuals curious about stablecoins, Tether is an example of how digital assets can provide liquidity, stability, and flexibility across traditional borders. Learn more about Tether’s USDT and its applications.
The increasing adoption of stablecoins highlights a larger shift toward digitized financial systems, but it also raises questions about regulation, sanctions enforcement, and the broader impact of blockchain on global economies.
