Iran launches Bitcoin-backed ship insurance for Hormuz transit

Iran has rolled out a shipping insurance product collateralized in Bitcoin, aimed at vessels transiting the Strait of Hormuz. The move is a workaround to sidestep Western sanctions that have largely cut Iranian financial institutions off from the dollar-denominated insurance and reinsurance markets that underwrite most global maritime traffic.

Using Bitcoin as the settlement and reserve asset lets Tehran offer coverage outside the SWIFT and London market rails, while giving shipowners — particularly those moving Iranian or sanctioned cargo — a payout mechanism that does not depend on correspondent banking. The structure also pushes more of the Hormuz risk pool onto a crypto-denominated balance sheet, with the attendant volatility exposure.

The program signals a broader pattern of sanctioned states formalizing crypto rails for critical commercial functions, and raises fresh questions for compliance teams at Western insurers, flag registries, and exchanges about how to identify and price claims tied to this coverage.