Iran has launched a state-backed maritime insurance platform that settles premiums in Bitcoin for cargo moving through the Strait of Hormuz. The service, called Hormuz Safe, arrives as Bitcoin holds near $77,000 after a sharp weekly slide from $83,000 to around $76,000. It also comes as oil prices stay above $100 and trade routes face heavy disruption.
Iran’s Ministry of Economic Affairs and Finance rolled out Hormuz Safe from May 16 to May 18. The platform lets Iranian shipping companies and cargo owners pay insurance premiums in Bitcoin. Officials said the service offers ‘cryptographically verifiable’ insurance policies. Those policies activate after on-chain confirmation.
The report says the coverage starts with Iranian entities only. It also excludes vessels linked to states involved in the US-Israeli conflict.
Officials claim the platform could generate more than $10 billion a year if it gains traction. That estimate comes from traffic through the Strait of Hormuz, which handles about 20% of global seaborne crude.
Business Insider said the initiative appears under the name 'Hormuz Safe’. Fars News also reported that the Ministry of Economy and Financial Affairs launched a Bitcoin-backed shipping insurance service. The idea first surfaced earlier in May. Iranian business magnate Babak Zanjani promoted it on social media.
The timing fits Iran’s growing use of crypto during the conflict. CoinShares said about 14 million Iranians use Bitcoin.
That equals roughly one in six people. The report also said annual transaction volumes have grown nearly 12% year-on-year and now represent about 2.2% of GDP. Analyst Chris Bendiksen said Bitcoin helps bypass traditional financial systems and sanctions. For Iran, that makes it a possible tool for shipping insurance without banks or dollar payments.
Still, the plan faces major obstacles. Traffic through the Strait of Hormuz remains near a standstill, so few ships need coverage. Sanctions also pose a risk to global shipping firms. Any company that works with an Iranian-backed system could face exposure to US sanctions.
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Bitcoin volatility adds another challenge. Insurance contracts usually need stability, while Bitcoin can move sharply in a single day. The wider backdrop remains tense. The conflict has entered its third month, Brent crude sits above $100, and shipments of fertilizer, helium, and petrochemicals continue to face disruption.
President Donald Trump’s administration has not secured a peace deal. Negotiations have stalled, and both Washington and Tehran continue to block passage through the Strait. Iran’s move ties a sensitive energy route to a volatile digital asset. For now, Hormuz Safe remains a bold experiment inside a disrupted trade corridor.
Iran’s Hormuz Safe plan ties Bitcoin to shipping insurance in the Strait of Hormuz while conflict, sanctions, and oil disruption continue. The move could reshape trade finance, but legal risk, low traffic, and Bitcoin volatility may limit its reach. Watch how shipping markets respond next.