Iran has launched a new Bitcoin-backed maritime insurance platform called ‘Hormuz Safe‘, aiming to provide shipping insurance for vessels travelling through the Strait of Hormuz and the Persian Gulf. The initiative marks one of Iran’s biggest attempts yet to use cryptocurrency for international trade and financial services while operating under heavy Western sanctions.
According to Iran’s IRGC-linked Fars News Agency, the platform was officially launched on May 16. Iranian authorities said ‘Hormuz Safe’ will allow shipping companies and cargo owners to buy marine insurance policies using Bitcoin and other cryptocurrencies instead of traditional banking systems linked to SWIFT.
The platform offers digital insurance certificates and financial responsibility documents for commercial ships. Coverage begins immediately after a crypto payment receives blockchain confirmation.
“Hormuz Safe provides Iranian shipping companies and cargo owners with fast, verifiable digital insurance – paid via Bitcoin and settled at the speed of the blockchain,” the platform reportedly said, according to an excerpt cited by Benzinga.
Iranian officials claim the service could generate over $10 billion annually if it captures a large share of regional shipping insurance demand, reported Crypto News. However, no independent financial source has confirmed that estimate so far.
The Strait of Hormuz remains one of the world’s most strategically important waterways. Roughly one-fifth of the global daily oil supply passes through the narrow route between Iran and Oman. Any disruption in the area can affect global oil prices and shipping markets.
How does Hormuz Safe work?
According to reports from Iran International and Bitcoin.com, the system generates digitally signed receipts and encrypted verification documents after users make payments in cryptocurrency.
The insurance coverage starts once blockchain confirmation takes place. Iran says the system reduces dependence on SWIFT and US dollar-based banking channels, which remain heavily restricted because of international sanctions.
The first phase of coverage focuses on risks such as vessel inspection, detention and confiscation. However, direct war damage caused by military strikes does not fall under standard insurance policies.
Iran has also suggested that the service could become an important source of revenue as tensions continue in the Gulf region.
The launch follows earlier reports that Iran charged vessels cryptocurrency-based transit fees for passing through the Strait of Hormuz. In April, a senior Iranian official reportedly told Reuters that Iran collected around $1 per barrel of oil in cryptocurrency from ships using the route.
Some tankers reportedly paid as much as $2 million during periods of heightened regional conflict. Hamid Hosseini, spokesperson for Iran’s Oil, Gas and Petrochemical Products Exporters’ Union, also told the Financial Times that the toll stood at roughly “$1 per barrel of oil.”
US-Israel and Iran tensions
Iran continues to face extensive US and Western sanctions targeting its oil exports, shipping industry and banking infrastructure, reported Crypto News. By using Bitcoin and cryptocurrencies instead of traditional payment systems, Iran appears to be building alternative financial channels outside US oversight.
In late April, US authorities froze nearly $500 million worth of Iranian crypto assets, reported Crypto News. That amount exceeded the $344 million in USDT frozen by Tether across two Tron addresses following requests linked to US sanctions enforcement.
Legal experts say shipping companies using Hormuz Safe could face exposure to US secondary sanctions. That risk may discourage many international operators from using the platform.
Greek maritime risk company MARISKS warned shipping companies about scammers pretending to represent Iranian authorities and demanding Bitcoin or USDT payments for safe passage.
At the same time, Fars News Agency previously denied reports that crypto toll collection had already started in the region.