Fiat currency depreciates by 90%! The Central Bank of Iran is aggressively buying 500 million USD worth of USDT just to save the Rial exchange rate

Iran Central Bank invests over $500 million to purchase USDT, establishing a sanctions-resistant shadow financial system, combining cross-chain operations and personal wallets to support trade settlements and cope with high inflation pressures.

Building a shadow financial system, Iran Central Bank invests over $500 million in Tether

According to the latest report by blockchain analysis firm Elliptic, the Central Bank of Iran (CBI) purchased at least $507 million worth of Tether ($USDT) stablecoins during April and May 2025. This operation was mainly conducted through payments in United Arab Emirates (UAE) dirhams (AED), utilizing multiple cryptocurrency wallet networks for systematic accumulation.

The investigation shows that this fund acquisition occurred amid severe fluctuations in Iran’s Rial (IRR), which depreciated by 90% within just 8 months, even reaching a historic low of 1.4 million IRR to 1 USD at one point.

Image source: Google Finance Iran’s fiat currency Rial has fallen 96% after sanctions this year

The Iranian government’s move is seen as a “sanctions refuge” strategy. Since the US withdrew from the nuclear deal and imposed strict sanctions in 2018, Iran has been excluded from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, preventing normal access to global currency markets or repatriation of export earnings. To address limited foreign exchange reserves and bans on oil sales, the Central Bank of Iran has attempted to establish a “sanctions-resistant banking mechanism” within a shadow financial layer. By viewing $USDT as a “digital offshore euro-dollar account,” Tehran authorities can hold assets with dollar value in areas inaccessible to US officials, thereby maintaining trade settlements and domestic market liquidity.

Turning to cross-chain anonymous pathways, Nobitex hacker incident triggers major asset movement

On the technical side of fund operations, the $507 million worth of $USDT initially flowed mainly to Iran’s largest cryptocurrency exchange, Nobitex. This exchange is not only the most important digital asset hub within Iran but is also considered a key tool for the Iranian government to inject dollar liquidity into local markets and support the Rial exchange rate.

However, this operational mode underwent a major change in June 2025. At that time, a hacker group supporting Israel, Gonjeshke Darande, breached Nobitex, resulting in approximately $90 million worth of crypto assets being stolen or destroyed. Following the hacking incident, the Central Bank of Iran quickly adjusted its strategy, migrating its assets from the original Tron (TRX) network to Ethereum via cross-chain bridges. Subsequently, these stablecoins were converted into various digital assets and shuttled across multiple blockchain networks and decentralized exchanges, attempting to obscure the trail of funds.

Image source: Elliptic After hacking, Nobitex sent funds through various blockchains and assets to these personalized addresses

Nevertheless, the high transparency of blockchain technology allowed researchers to continue tracking the flow of these assets. By the end of 2025, the known wallets directly linked to the Central Bank of Iran had a zero balance in $USDT , indicating that these assets were most likely sold on the open market for IRR or used to support sanctioned international trade settlements.

Blockchain regulatory tug-of-war, IRGC and personal wallets active simultaneously

Despite Iran’s official attempts to evade sanctions through digital assets, Tether (USDT) as a stablecoin issuer still retains control over related assets. In June 2025, Tether, in cooperation with law enforcement, froze multiple wallets associated with the Central Bank of Iran, involving approximately $37 million. This highlights that although stablecoins can provide cross-border liquidity, they still face high blacklist risks under public ledger surveillance.

Additionally, the report notes that beyond the actions of the central bank, the Islamic Revolutionary Guard Corps (IRGC) has increasingly participated in the cryptocurrency industry. Data shows that wallet addresses linked to IRGC received assets valued at over $3 billion in 2025, significantly increasing their share of the country’s overall crypto activity.

On the macroeconomic level, according to Chainalysis, Iran’s cryptocurrency industry reached a scale of $7.78 billion in 2025. This is not only a strategic choice by the government but also reflects the strong demand among ordinary citizens for asset protection amid 40% to 50% inflation.

Image source: Chainalysis Iran’s crypto industry reached $7.78 billion in 2025

Especially during the mass protests from late 2025 to early 2026, there was a significant increase in withdrawing Bitcoin ($BTC) from exchanges to personal wallets. Many Iranians see Bitcoin as a censorship-resistant, personally controlled financial tool that ensures assets can operate outside government channels even amid economic collapse or internet shutdowns. This comprehensive digital transformation from government to individual has made cryptocurrencies a core pillar for Iran’s survival amid international isolation and domestic turmoil.

This article is a compilation of information from various sources by Crypto Agent, reviewed and edited by Crypto City. It is still in training, and may contain logical biases or inaccuracies. The content is for reference only and should not be considered investment advice.