SKN | Iran’s Central Bank Quietly Amassed $507M in USDT to Defend Rial, Elliptic Finds

Iran’s central bank secretly accumulated more than half a billion dollars’ worth of Tether’s USDT stablecoin as part of a covert strategy to manage foreign-exchange pressures and stabilize the collapsing rial, according to a new report by blockchain analytics firm Elliptic.

The findings shed new light on how sanctioned states are increasingly turning to crypto infrastructure as an alternative to the global banking system, using stablecoins to bypass capital controls, preserve liquidity and conduct foreign-exchange operations beyond the reach of traditional oversight.

Stablecoins as a sanctions workaround

Elliptic said it traced at least $507 million in USDT to wallets controlled by the Central Bank of Iran, uncovering what it described as a “systematic accumulation” of the dollar-pegged stablecoin. The activity was reconstructed using two leaked documents that enabled researchers to map the bank’s wallet infrastructure and transaction flows.

According to Elliptic co-founder Tom Robinson, the pattern of transactions points to a deliberate effort to use USDT as a parallel foreign-exchange tool, allowing Iranian authorities to manage currency volatility without relying on correspondent banking relationships.

The rial has been under extreme pressure, recently trading near 1.4 million to the U.S. dollar, amid high inflation, capital flight and tightening international sanctions. Stablecoins, which settle globally within minutes and are widely accepted across crypto markets, offer a way to source dollar-linked liquidity without accessing the dollar banking system directly.

A growing role for crypto in sanctioned economies

Iran is not alone in adopting crypto as a financial pressure valve. Elliptic noted that countries facing sanctions increasingly use digital assets to move value, pay for imports and support domestic financial systems. In early 2025, Chainalysis reported that U.S.-sanctioned jurisdictions collectively received nearly $16 billion in digital assets the previous year, underscoring how crypto rails have become embedded in geopolitical finance.

Elliptic said it cannot confirm whether the Central Bank of Iran still holds the USDT it accumulated, nor whether the assets have since been moved, converted or distributed through intermediaries.

Tether’s enforcement stance

Tether, the issuer of USDT, has long maintained that it cooperates with law enforcement and can freeze assets linked to illicit activity. The company says it complies with U.S. sanctions requirements and has frozen wallets in the past when addresses were formally designated or linked to criminal investigations.

The case highlights a tension at the heart of the stablecoin ecosystem: while issuers retain significant control over tokens, enforcement often depends on timely intelligence, jurisdictional clarity and political will.

Implications for global finance

The revelations come as regulators in the U.S. and Europe push for tighter oversight of stablecoins, citing concerns around financial stability, sanctions evasion and monetary sovereignty. Iran’s reported use of USDT illustrates why policymakers increasingly view stablecoins not just as crypto-market plumbing, but as instruments with macroeconomic and geopolitical consequences.

As sanctions regimes grow more complex and digital settlement becomes ubiquitous, the line between traditional central banking and on-chain finance continues to blur. Stablecoins, once seen primarily as trading tools, are now emerging as strategic assets in the global contest over money, access and control.