Iran's use of crypto to sustain international trade

Iran is increasingly turning to cryptocurrencies as an alternative channel for obtaining foreign exchange and settling export payments amid constraints on traditional banking and cross-border fund flows. Business accounts indicate that receiving export proceeds in crypto has become normalized: companies accept USDT, Bitcoin and other digital assets, with USDT reportedly the most widely used. TRM Labs attributed roughly $9.9 billion of on-chain crypto volume to Iran in 2025, down from about $11.4 billion in 2024, suggesting persistent structural demand rather than purely speculative trading. The central bank has reportedly eased foreign-exchange controls and tolerated crypto settlement for exporters, though this appears as an enforcement shift rather than a formal legal authorization. As a result, exporters can repatriate overseas proceeds via domestic crypto exchanges, convert foreign currency on open markets, or use export revenue directly to buy imports, reducing reliance on official exchange channels that often offer less favorable rates. However, domestic tolerance does not eliminate international sanctions risks: U.S. measures can target Iranian digital-asset exchanges and expose foreign counterparties to penalties. Stablecoins can speed settlement but are also controllable by issuers. In April 2026, Tether froze about $344 million in USDT held across two Tron addresses linked by authorities to Iranian state and military networks, demonstrating that tokens can be blocked. Authorities have since designated several Iranian exchanges, which were estimated to handle roughly 78% of Iran-attributed crypto volume in 2025, with one platform processing more than half of inflows. Future outcomes depend on whether regulators publish formal settlement rules or licensing; until then, the shift remains a tolerated practice with legal and sanctions-related uncertainties.