That role is changing.
The Elliptic blockchain analysis report found that wallets linked to the Central Bank of Iran have accumulated at least $507 million worth of USDT. Stablecoins are no longer a retail tool. They are quietly becoming part of national financial infrastructure, something they were never designed to be.
Blockchain analytics firm Elliptic discovered the purchases through leaked documents and on-chain analysis, identifying two separate acquisitions between April and May 2025. By mapping out the Central Bank’s wider wallet infrastructure, the report revealed what appears to be a systematic accumulation of USDT. This was a coordinated and deliberate acquisition.
Why would a central bank turn to stablecoins?
Being removed from SWIFT and restricted US dollar access effectively isolated Iran from the global banking system. International trade still depends on correspondent banking and US dollar activity. For Iran, this is not possible.
Stablecoins provide an alternative route. By acquiring USDT, Iran gains exposure to the US dollar without relying on the traditional banking system. For a country facing a sharply depreciating native currency, the Rial and heavy sanctions, stablecoins provide a solution.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has already begun responding. In September 2025, it sanctioned Zedcex and Zedxion, both cryptocurrency exchanges, for facilitating Iran’s sanction evasion, along with an additional seven individuals accused of supporting the regime, with six of these individuals connected to the Islamic Revolutionary Guard Corps of Iran.
Among those seven was Babak Zanjani, a businessman linked to both exchanges and alleged to have channelled funds towards projects associated with the Islamic Revolutionary Guard Corps (IRGC).
Stablecoins, typically pegged to the US dollar and issued by private firms such as Tether and Circle, occupy a strange middle ground. They operate on decentralised networks, yet remain centrally issued.
For sanctioned states, they offer a digital dollar outside of the traditional banking system. But unlike physical cash, they can be frozen by issuers at any time. The dual nature of stablecoins creates uncertainty. They can be used to facilitate sanction evasion and enforce sanctions compliance. So who actually controls this type of financial infrastructure?
What makes this story interesting is that it extends far beyond Iran. Born in the aftermath of the 2008 financial crisis, Bitcoin was designed to replace Central Banks. Central banks accumulating dollar-backed stablecoins represent the shift of crypto from disrupting the financial system to reshaping it.
Stablecoins were introduced to stabilise crypto markets, but institutional adoption suggests they may be redesigning global finance. This Iran story leaves a clear takeaway.
Stablecoins have become a geopolitical instrument.
