“Hormuz Safe”: Iran Plans Bitcoin-Based Insurance Scheme to Control Contested Strait
According to a report by the state-affiliated news agency Fars News, Iran’s Ministry of Economy is working on a model designed to secure control over the Strait of Hormuz through a maritime insurance system. Payments are to be processed in Bitcoin. The platform is called “Hormuz Safe”.
Insurance instead of a toll
According to an internal document obtained by Fars, the Ministry of Economy is pursuing an approach that would enable management of the strait through insurance products. The model is intended to be legally viable under international law while simultaneously securing Iran’s permanent control over shipping traffic.
Specifically, ship owners and freight companies would not pay a direct transit fee, but would instead purchase maritime insurance policies and certificates of financial liability. In a first phase, the insurance is to cover risks arising from ship inspection, detention, and seizure. Damages resulting from the use of weapons are explicitly excluded.
“The model would enable management of the Strait of Hormuz through insurance, which would be acceptable to other countries in peacetime while simultaneously securing Iran’s control over the strait.” (Fars News, citing an internal document of the Ministry of Economy)
Bitcoin as a means of payment
A central element of the plan is the processing of all payments in Bitcoin. The background is the pressure exerted by comprehensive US sanctions, which largely exclude Iran from the dollar-based financial system. From Iran’s perspective, Bitcoin is considered particularly suitable, as digital assets of this kind cannot be frozen or seized.
According to Fars, policies are to be issued quickly, cryptographically verified, and activated immediately upon confirmation of payment. Cargo owners would subsequently receive a signed digital proof.
Projected revenues and strategic background
The Ministry of Economy estimates the revenue potential of the model at over ten billion US dollars. By comparison, the ministry estimates that a conventional toll system would generate only around two billion dollars under the most favorable conditions, and would also entail considerable political costs.
Around 20 percent of global oil trade passes through the Strait of Hormuz. Iran had already passed a law in March 2026 governing the management of the strait, which formalized a transit system under the supervision of the Revolutionary Guards. The insurance platform is now intended to supplement this system and place it on a broader legal footing.
Operational status unclear
Whether “Hormuz Safe” is already operational or whether initial policies have been issued could not be independently confirmed at the time of reporting. The website mentioned in the report displayed only a landing page with no complete terms and conditions, information about insurers, or claims settlement procedures.
For international shipping companies and cargo owners, using the platform carries significant compliance risks. Payments to Iranian state-affiliated entities can trigger sanctions violations regardless of the payment method used.
Assessment
The Ministry of Economy’s plan is part of a long-standing Iranian strategy to build alternative financial structures outside the Western-dominated system. Iran had already legalized industrial Bitcoin mining in 2019 and at times accounted for up to 4.2 percent of the network’s global computing power. With “Hormuz Safe,” Bitcoin would for the first time be used as a settlement currency for a state-controlled insurance product at one of the world’s most strategically significant maritime trade corridors.
