Iran’s Stablecoin Lifeline Survived the Bombs
Iran's crypto infrastructure, heavily reliant on stablecoins like USDT, showed stress but did not fail during recent airstrikes, proving their indispensability.Summary
Prior to recent airstrikes on February 28, US scrutiny was already focused on whether Iranian officials were using crypto to evade sanctions, with estimated crypto volumes reaching $8–10 billion in 2025. Analysis showed significant stablecoin use by the Central Bank and entities linked to the Islamic Revolutionary Guard Corps (IRGC), with two UK-registered companies funneling hundreds of millions in stablecoins to the IRGC in 2024.
When the strikes caused a 99% drop in internet connectivity, crypto volumes fell 80%, and Iran's Central Bank temporarily halted trading in the critical USDT-toman pair to slow the rial's collapse. While exchanges experienced stress, TRM Labs assessed the system showed "evidence of stress, not failure." This episode confirmed USDT's deep integration into Iran's financial system, serving as a crucial tool for sanctions evasion.
Following these events, the FATF released a report highlighting that stablecoins accounted for 84% of illicit crypto volume in 2025 and urged issuers to implement freeze and deny-listing capabilities. The situation highlights the paradox where USDT’s utility for legitimate payments is mirrored by its effectiveness as an instrument for sanctions evasion, a consequence the West must confront as Iran's reliance on crypto deepens.
(Source：BeInCrypto)