Iran Introduces Bitcoin-Backed Insurance For Ships Crossing Strait Of Hormuz

Iran has launched a Bitcoin-backed insurance service for shipping companies operating through the Strait of Hormuz, as it continues to tighten its control over one of the world’s most important maritime trade corridors amid continuing tensions with the United States and Israel.

The new platform, called Hormuz Safe, was reported by Iran’s semi-official Fars news agency, which cited documents from the country’s Ministry of Economy and Financial Affairs.

According to screenshots of the platform shared by Fars, the service is meant for Iranian shipping companies and cargo owners transiting the Persian Gulf, the Strait of Hormuz and surrounding waterways.

Fars said insurance payments and settlements under the new system would be made in Bitcoin.

The platform reportedly offers “cryptographically verifiable insurance policies” for ships and cargo passing through the region. The website, hormuzsafe.ir, does not appear to be accessible outside Iran.

Iran reportedly believes the project could generate more than $10 billion in revenue, although no timeline or detailed business model was provided.

The launch of the insurance system follows Iranian efforts to formalise oversight of maritime traffic through the Strait of Hormuz after the US and Israel began airstrikes against Iran on February 28.

Since then, Tehran and the Islamic Revolutionary Guard Corps (IRGC) have increasingly sought to regulate vessel movements, including through designated shipping routes near Iran’s coastline and the collection of transit-related payments.

According to reports, some ships have been allowed to pass through Iranian-controlled corridors after making payments that reportedly reached as much as $2 million. In response, the United States has imposed blockades on Iranian ports.

The US and Iran have observed a fragile ceasefire since early April, but tensions remain high.

US President Donald Trump recently warned Iran to “better get moving, FAST, or there won’t be anything left of them,” in a post on Truth Social.

The disruption has affected regional shipping and oil exports. According to the US military, more than 1,500 commercial vessels were trapped in the Persian Gulf as of early May.

Gulf oil producers have also reduced output because of storage shortages caused by shipping delays.

Iran this week also officially launched the Persian Gulf Strait Authority (PGSA), a new body responsible for managing traffic through the Strait of Hormuz.

Iranian officials said the authority would provide operational updates and oversee shipping movements through designated routes.

Ebrahim Azizi, head of Iran’s parliamentary commission for national security, said only vessels and companies “cooperating with Iran” would benefit from the new system.

He also said specialised service fees would be charged and that countries involved in the US-Israel conflict with Iran would be denied access.

The viability of a Bitcoin-based marine insurance system remains uncertain. Unlike stablecoins pegged to fiat currencies, Bitcoin’s price volatility has limited its adoption in mainstream shipping finance and insurance markets.

Foreign shipowners may also avoid participation due to concerns over potential violations of US sanctions on Iran.

The project has also drawn attention because of its links to Iranian businessman Babak Zanjani, who previously helped Iran bypass sanctions on oil exports.

Zanjani promoted the Hormuz Safe project shortly after the Fars report was published. He was released from prison last year after his death sentence for embezzlement was reduced.

Iranian officials also said Tehran and Oman recently discussed creating a mechanism to ensure safer passage for ships travelling through the Strait of Hormuz.

References: news18, moneycontrol