Shenchao Digest: Iran's Ministry of Economy has launched a Bitcoin-settled maritime insurance platform called 'Hormuz Safe', targeting Iranian shipowners and cargo owners transiting the Strait of Hormuz with 'cryptographically verifiable insurance policies'. Iranian state media claims the platform could generate over $100 billion in annual revenue.
However, independent verification of whether the platform is actually operational has not been obtained. Its feasibility faces severe challenges due to Bitcoin's high volatility, compliance risks from US sanctions, and the controversial background of its alleged backer, Babak Zanjani. This represents Iran's most prominent attempt to convert its military control over the Strait of Hormuz into a crypto-financial product.
Iran is attempting to turn one of the world's most critical maritime chokepoints into a Bitcoin-settled insurance market.
According to a Bloomberg report on May 18, Iran's semi-official Fars news agency, citing documents from the country's Ministry of Economic Affairs and Finance, reported that Iran has launched a Bitcoin-backed maritime insurance service named 'Hormuz Safe' for Iranian shipping companies and cargo owners wishing to pass through the Strait of Hormuz.
Fars stated that the plan could generate over $100 billion in revenue for Iran but did not provide a timeframe or operational details.
Since the US and Israeli airstrikes on Iran on February 28, Iran has effectively closed the Strait of Hormuz. In peacetime, the strait handles about 20% of global seaborne oil trade and 20% of liquefied natural gas exports.
The Iranian government and the Islamic Revolutionary Guard Corps (IRGC) have since sought to formalize control over the waterway, including charging tolls and other fees. The insurance service is the latest link in its chain of revenue-generating tools.
Crypto-Verified Policies, Bitcoin Instant Settlement
According to a screenshot of the 'Hormuz Safe' website shared by Fars, the platform claims to provide Iranian shipping companies and cargo owners with 'fast, verifiable digital insurance'. As reported by Bitcoin Magazine, coverage includes risks such as vessel inspection, seizure, and confiscation, but war damage claims are excluded.
Fars quoted the description from the website hormuzsafe.ir, stating that the platform will provide 'cryptographically verifiable insurance policies' for cargo transiting 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 the cargo owner will receive a signed receipt. The website currently appears inaccessible outside Iran.
According to Bitcoin Magazine, Iran's Ministry of Economy began advancing this insurance plan from late April (early Ordibehesht in the Persian calendar). In April, Hamid Hosseini, spokesman for the Iranian Oil, Gas, and Petrochemical Products Exporters Union, told the Financial Times that shipping companies could settle Strait of Hormuz passage fees using non-dollar currencies like Bitcoin or Chinese Yuan.
Accelerating Institutionalization: From Tolls to Insurance Platform
Hormuz Safe is not an isolated move but the latest component of an entire institutional framework Iran is building around the Strait of Hormuz.
According to Bitcoin Magazine, in March 2026, the Iranian parliament passed the 'Strait of Hormuz Management Plan', formalizing into law the toll system operated by the IRGC since mid-March. Under this framework, the IRGC charges fees to ships passing through the strait; operators must submit information on vessel ownership, cargo type, destination, and crew to obtain a passage permit code.
Fees start at about $1 per barrel of oil, with fully loaded oil tankers facing charges up to $2 million, payable in Chinese Yuan.
On May 18, Iran's Supreme National Security Council announced the formal establishment of the 'Persian Gulf Strait Authority' (PGSA) and opened an official account on X.
According to Euronews, the agency is positioned as an administrative entity to manage Strait of Hormuz traffic and collect tolls, operating in coordination with the IRGC Navy.
Ships must submit complete information, including ownership, insurance, crew lists, cargo declarations, and planned routes, via the PGSA's official email for approval and payment before receiving passage permits.
Ebrahim Azizi, chairman of the National Security and Foreign Policy Committee of the Iranian parliament, stated on X that only commercial vessels cooperating with Iran will benefit from this mechanism, and parties involved in US-Israeli military operations will be banned from using the route.
According to Windward intelligence analysis, as of May 18, strait traffic remains only about 38% of pre-conflict levels, with central Qeshm-Larak anchorage showing fixed dark vessel positioning for six consecutive days. Approximately 369 IRGC fast boats are concentrated in a single area about 30 nautical miles northeast of Khasab, shifting from coastal patrols to a presence in the main body of the strait.
Volatility, Sanctions Risks, and Shadow of Fraud
Several analysts have expressed skepticism about the practical feasibility of Hormuz Safe.
Bloomberg points out that, unlike stablecoins pegged to the US dollar, Bitcoin's price is highly volatile, limiting its adoption as a payment method. Foreign shipowners may be reluctant to use the mechanism for fear of violating US sanctions against Iran.
Ryan Yoon, senior analyst at Tiger Research, told Decrypt that the platform's technical and legal feasibility is 'highly questionable'; despite the announcement of its launch, no actual users have been confirmed. Shipping companies using Hormuz Safe would face the risk of 'immediate expulsion from the global financial system'.
Cake Wallet CEO Vikrant Sharma told BeInCrypto that Bitcoin can reduce some payment friction but is not a clean path to bypass the sanctions system. Liquidity at the scale of maritime insurance is a limiting factor. Activity on public blockchains can be monitored, and any exchange, broker, custodian, or counterparty tied to the US dollar brings compliance risks.
Sam Lyman, Research Director at the Bitcoin Policy Institute, explained Iran's logic from another angle: Bitcoin's core appeal lies in the fact that 'no one can freeze it'.
According to Decrypt, since the war began, crypto 'safe passage fee' scams have proliferated. Scammers impersonate Iranian authorities, demanding Bitcoin or USDT from ship operators. Hormuz Safe appears to be an independent national-level plan, but the line between genuine and fake is extremely blurred in the current environment.
The Bigger Picture: Iran Building a De-dollarized Maritime Financial System
According to Bitcoin Magazine data, Iran's crypto ecosystem was estimated at $7.8 billion in 2025, with IRGC-linked transactions accounting for about 50% of the country's total crypto volume (as of Q4 2025). The Iranian government has reportedly used mined Bitcoin to fund imports and hedge against oil revenue losses, with a stated national mining cost of about $1,300 per coin.
CoinDesk's analysis was quite precise: an insurance structure is more sophisticated than directly charging tolls. On paper, cargo owners are not paying for passage but purchasing insurance and financial responsibility certificates for sailing in waters that Tehran claims it can secure. This allows Iran to monetize its geographical advantage in a more palatable way.
A comment by Hacker News user everdrive received high votes in the tech community: The post-WWII US-led world order was partly built on the premise that the US military kept international waters open. Iran challenging the US at this level is astonishing. Everyone knew Iran had the capacity to close the strait if backed into a corner, but the arrival of this outcome still exposes serious policy-level miscalculations.
Regardless of whether Hormuz Safe ultimately operates at scale, the signal it sends is clear: Iran is building a complete set of administrative governance and financial infrastructure around the Strait of Hormuz, converting military blockade into a sustainable sovereign revenue mechanism, with Bitcoin serving as the settlement layer for this system.
