Iran Attempts to Save Rial Crisis with $507 Million USDT

The Central Bank of Iran reportedly acquired over $500 million in the stablecoin Tether throughout 2025. This strategic move aims to combat the rapid devaluation of the national currency and bypass stringent international financial sanctions.

Blockchain analytics firm Elliptic identified a series of transactions linking the Iranian government to significant digital asset holdings. The data suggests that the central bank is increasingly relying on decentralized networks to maintain liquidity in a struggling economy.

Key Takeaways

• Iran’s central bank utilized $507 million in USDT to inject dollar liquidity into the domestic market and stabilize the rial.
• The funds were moved through local exchanges such as Nobitex after being acquired via third-party brokers using UAE dirhams.
• While providing a temporary shield against sanctions, the traceable nature of blockchain transactions exposes the strategy to potential international enforcement.

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Iran Central Bank Buy USDT to Offset Economic Decline

The decision for the Iran central bank buy USDT comes at a critical time for the nation's economy. The rial lost approximately 50% of its value against the US dollar in less than a year, reaching historic lows.

By early 2026, the exchange rate plummeted to nearly 1.5 million rials per dollar. This collapse fueled record inflation and widespread social unrest, forcing officials to seek unconventional methods to secure stable foreign currency reserves.

Reports indicate that the Iran central bank USDT strategy involved a shadow banking system. This system operated by converting UAE dirhams into digital assets through a broker known as Modex during the first half of 2025.

Once the USDT was acquired, it was funneled into the Iranian crypto exchange Nobitex. From there, the assets were likely converted back into rials or used to facilitate cross-border trade settlements that traditional banks would not process.

Read more: Bitcoin Price Analysis Amid Iran-US Conflict: Market Reaction and Risk Factors

Sources: X - @elliptic

The use of the TRON and Ethereum blockchains allowed for the rapid movement of funds without relying on the SWIFT network. This digital workaround provided a vital lifeline for importers and government agencies needing access to dollar-pegged value.

However, the strategy faced a significant setback in mid-2025 when a security breach at Nobitex resulted in the loss of $90 million. This event highlighted the unique security risks associated with state-level reliance on private digital infrastructure.

Geopolitical tensions have further complicated the situation as the US administration increases pressure on sanctioned regimes. The reliance on digital assets is seen as a direct response to the inability to access physical greenbacks.

Iran attempts to save rial crisis with USDT by creating a buffer against the traditional financial system. If successful, this model could be emulated by other nations facing similar isolation from the global banking order.

The long-term viability of this plan remains uncertain due to the transparency of public ledgers. Analysts suggest that Tether or US authorities could eventually blacklist the specific wallet addresses involved in these state-level transactions.

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Conclusion

The Iran central bank usdt acquisition represents a significant shift toward the normalization of stablecoins in state-level finance. While the $507 million injection provided temporary relief for the rial, the move underscores the desperate economic conditions within the country.

Ultimately, the Iran use usdt to save rial crisis strategy demonstrates both the utility and the risks of blockchain technology in global politics. As transparency tools improve, the ability for sanctioned nations to hide large-scale capital movements will likely face increasing challenges.

FAQ

How did the Iranian central bank acquire half a billion dollars in USDT?

The Iranian government used a middleman broker named Modex to purchase the stablecoins using UAE dirhams during the spring of 2025. These assets were then transferred to domestic wallets and exchanges to support the local economy.

Why is Iran using Tether instead of Bitcoin for its national reserves?

Tether is pegged to the US dollar, providing the price stability necessary for trade and currency intervention. Unlike Bitcoin, which is highly volatile, USDT allows the central bank to maintain a predictable value for its foreign exchange operations.

What is Nobitex and what role does it play in this crisis?

Nobitex is the largest cryptocurrency exchange in Iran and served as the primary hub for the central bank to distribute USDT. The exchange allowed the government to convert digital assets into rials for domestic use or trade settlement.

Can the US government block Iran from using USDT?

Because USDT is a centralized stablecoin issued by Tether Limited, the issuer has the technical ability to freeze specific wallet addresses. If the US government identifies the wallets used by Iran, they can pressure Tether to blacklist those funds.

How has the rial performed since the central bank started buying crypto?

The rial remains under extreme pressure despite the crypto injections, trading at approximately 1.47 million to one US dollar in early 2026. While the USDT purchases helped manage liquidity, they have not yet reversed the long-term trend of currency devaluation.

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