Iran has established a mandatory cryptocurrency payment system for commercial vessels navigating the critical Strait of Hormuz, marking the first known instance of a nation-state levying transit fees in digital assets at a global maritime chokepoint. The system, administered by the Islamic Revolutionary Guard Corps (IRGC), took effect in mid-March 2026.
Vessels are required to submit detailed documentation—including ownership, cargo manifests, and destination—to an IRGC-linked intermediary for screening. Ships linked to the United States or Israel are barred from passage. Approved vessels negotiate fees based on a five-tier "friendliness" scale, with tolls ranging from $0.50 to $1 per barrel of crude oil. A fully loaded very large crude carrier (VLCC) can face bills of up to $2 million per vessel.
Payments are accepted in Chinese yuan via the Kunlun Bank's CIPS system or in cryptocurrency. Iran's parliament formalized the arrangement on March 30–31, 2026, through the "Strait of Hormuz Management Plan," explicitly authorizing payments in rials, yuan, or "digital currencies." A dedicated crypto-conversion window on Qeshm Island handles incoming funds.
While Iranian officials have publicly referenced Bitcoin (BTC), industry observers from firms like Chainalysis and TRM Labs believe stablecoins such as Tether (USDT) are preferred for their price stability and liquidity, aligning with the IRGC's long-standing sanctions-evasion strategy. The analysis highlights that XRP (XRP) is conspicuously absent from these transactions, as its bank-based, regulated system cannot support sanctioned activities.
The economic stakes are enormous, with roughly 20% of global oil and liquefied natural gas transiting the strait. TRM Labs estimates daily revenue from oil tankers alone could reach $20 million, scaling to $600–800 million monthly when including LNG carriers. Iranian sources reportedly project annual collections as high as $120 billion at full capacity.
The IRGC's dominant role in Iran's crypto economy is underscored, with the Guard controlling roughly half of the country's on-chain activity in late 2025. Associated addresses received more than $2 billion in 2024 and surpassed $3 billion in 2025, according to conservative estimates from sanctions designations.
This development extends Iran's established use of crypto for oil sales and bypasses traditional banking rails to reduce exposure to U.S. sanctions. However, it also introduces compliance risks for shipping companies and sets a precedent that could inspire other sanctioned states to monetize strategic waterways.
