Iran appears to be exploring a plan to turn the Strait of Hormuz—one of the world's most critical energy chokepoints—into a Bitcoin-settled insurance market. State-linked Fars News reported that Iran's Ministry of Economy is working on a scheme to manage vessel traffic through the strait using marine insurance policies and financial responsibility certificates, with all payments settled in bitcoin.
Hormuz Safe Platform Covers Persian Gulf to Strait of Hormuz Cargo
The platform, named Hormuz Safe, would provide coverage for maritime freight transported through the Persian Gulf, the Strait of Hormuz, and nearby waterways. According to Fars, policies would be issued quickly with cryptographic verification and become active once payment is confirmed. A signed digital receipt would then be provided to the cargo owner. However, the website referenced in the report appeared to be only a landing page; full policy terms, underwriters, exclusions, and claims procedures were not available.
CoinDesk could not independently verify whether Hormuz Safe is operational or whether any cargo owners have used it.
Revenue Model Unclear: How Does $10 Billion Arise?
Fars stated the model could generate more than $10 billion annually for Iran, but provided no explanation for how that figure was calculated. The Strait of Hormuz handles roughly 20% of global oil shipments daily. While mandating bitcoin-denominated insurance for all transiting vessels could theoretically yield substantial revenue, the practical feasibility remains dubious.
The plan essentially offers Iran a way to monetize its position around the Strait of Hormuz without imposing a direct toll on ships. An insurance structure would be less aggressive than a fee: cargo owners would not explicitly pay for passage—at least on paper—but would purchase coverage, financial liability certification, or inspection-related insurance for ships sailing through waters Tehran claims it can secure.
Sanction Risks Persist; Bitcoin Payments Add Compliance Landmines
Iran has long sought ways to reduce reliance on dollar-based systems under sanction pressure, with bitcoin playing a role. A BTC-settled marine insurance product fits that effort, but creates direct compliance risks for shipowners, traders, and insurers. Payments to entities linked to the Iranian state may still trigger sanction risks, regardless of whether they flow through banks, stablecoins, or bitcoin.
Any company considering using Hormuz Safe will likely need a legal review before engaging with the platform. The proposal remains in early stages, with limited details. But if Hormuz Safe becomes operational, it would place bitcoin as a settlement medium within an Iran-linked insurance product tied to cargo movement through one of the world's most sensitive trade routes.