Iran’s central bank acquired $507 million in Tether’s U.S. dollar-pegged stablecoin, mostly over the course of last year, according to Elliptic.
“Elliptic’s researchers have been able to map out the Central Bank’s wider wallet infrastructure, revealing a systematic accumulation of USDT totaling at least half a billion dollars,” the blockchain analytics firm said Wednesday. “It indicates a sophisticated strategy to bypass the global banking system.”
Due to sanctions, Iran is unable to access the global banking system and transfer funds using the SWIFT messaging system. Elliptic said the Central Bank of Iran (CBI) likely acquired the USDT to support its domestic currency, the rial, and settle international trade.
Elliptic’s report follows The Washington Post reporting this month that Iran’s Islamic Revolutionary Guard Corps (IRGC) used two cryptocurrency exchanges registered in the United Kingdom to move approximately $1 billion since 2023. The vast majority of transactions were settled using USDT.
“The CBI’s accumulation of USDT began in earnest during a period of extreme economic volatility. The value of the rial had halved in just eight months, to a record low against the dollar,” Elliptic said. “Iran’s central bank may have attempted to stem this decline by buying rials with USDT on Nobitex, effectively using cryptoassets to perform open market operations that would usually be conducted with cash reserves.”
Nobitex is by far Iran’s largest cryptocurrency exchange. According to Elliptic, Nobitex lets customers not only store USDT but also exchange it for other digital assets or sell it for rials.
Last year, Nobitex suffered a major exploit when hackers withdrew up to $90 million from its hot wallets. Elliptic said the pro-Israel group Gonjeshke Darande orchestrated the attack.
Stablecoins popular for illicit activity
Stablecoins constitute the predominant medium for illicit cryptocurrency transactions, according to Chainalysis. Although Tether’s USDT, the world’s most popular stablecoin, has been used to settle illicit transactions, the firm has made efforts to crack down on parties using its USD-pegged token to conduct illegal activity.
Last July, Tether said it had assisted in freezing more than 2,380 wallets holding about $1.14 billion in USDT for U.S. agencies, including the FBI and U.S. Secret Service.
Elliptic alleges that the Central Bank of Iran seems to be building a “sanctions-proof” banking mechanism that replicates holding traditional U.S. dollar accounts.
“By treating USDT as ‘digital off-book eurodollar accounts,’ the regime creates a shadow financial layer capable of holding US dollar value outside the reach of US authorities,” the firm said.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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