Iran Launches Bitcoin-Backed Hormuz Safe Insurance Amid Strait Blockade

Iran has launched "Hormuz Safe," a Bitcoin-backed digital maritime insurance platform designed to manage commercial vessel transit through the Strait of Hormuz, projecting over $10 billion in revenue. Developed by the Ministry of Economy and managed by the newly formed Persian Gulf Strait Authority, the system requires cryptocurrency payments and provides cryptographically verifiable policies covering inspection, detention, and confiscation risks, though it excludes military attack damage. Some vessels have reportedly paid tariffs of $1 per barrel of oil in Bitcoin, with individual payments reaching up to $2 million.

The initiative follows Iran's effective closure of the strait after a US-Israeli war began on February 28, which followed strikes that killed Supreme Leader Ayatollah Ali Khamenei. A fragile ceasefire has held since April 8. Iran's Supreme National Security Council established the Persian Gulf Strait Authority on May 18 to exercise sovereignty over the waterway, provide operational updates, and collect tolls. The Islamic Revolutionary Guard Corps had already declared a strict maritime control zone on May 4. Businessman Babak Zanjani began promoting the Bitcoin insurance concept on May 8.

The United States responded with a naval blockade of Iranian ports and the Office of Foreign Assets Control warned that vessels paying Iranian tolls risk breaching sanctions. A competing $40 billion US maritime insurance program led by the International Development Finance Corporation and Chubb has issued no active policies due to a lack of naval escorts. US Central Command launched "Project Freedom" to restore freedom of navigation. President Donald Trump warned that time to reach a deal is limited, while the US has agreed to a negotiation framework temporarily waiving certain oil sanctions. Iran demands complete sanctions removal for any long-term agreement. Meanwhile, vessels from China, France, and India have coordinated with Tehran for passage, and European governments have opened direct diplomatic channels. Oman is collaborating with Iran on a legal framework for shared sovereignty and regulated transit.