Iran’s crypto ecosystem expanded to $7.78 billion in 2025, marking one of the fastest growth rates among sanctioned economies. But this is not a story of fintech adoption or innovation. It is a story of survival, protest, and shadow finance, where digital assets serve radically different purposes for citizens and the state.
These findings are outlined in a new report by Chainalysis, which effectively turns blockchain data into a real-time diagnostic tool for Iran’s collapsing financial system.
IRGC Tightens Its Grip on Crypto
The most alarming conclusion of the report is the dominant role of the Islamic Revolutionary Guard Corps (IRGC) in Iran’s crypto market. According to blockchain analysis, wallets linked to IRGC-affiliated entities control more than 50% of the country’s total crypto activity as of Q4 2025.
Assets associated with these wallets grew:
- from $2 billion in 2024
- to over $3 billion in 2025.
According to Chainalysis, these funds are used to:
- finance proxy groups across the Middle East,
- procure weapons,
- bypass international financial sanctions.
Crucially, analysts stress that these figures represent only a lower bound, as many front companies and proxy wallets remain unidentified.
Bitcoin as a Tool of Resistance
At the same time, ordinary Iranians are rapidly moving bitcoin off centralized exchanges into self-custodied wallets. During widespread protests in late 2025 and early 2026, Chainalysis observed abnormal spikes in withdrawals to non-custodial wallets.
The motivations are stark and existential.
Capital preservation.
Iran’s rial has lost more than 90% of its value since 2018, while inflation has hovered between 40% and 50%. The national currency has effectively ceased to function as a store of value.
Financial autonomy.
During periods of internet shutdowns and violent crackdowns on protests, bitcoin remains one of the few assets the state cannot easily seize, freeze, or confiscate.
Preparation for emigration.
For many Iranians, crypto has become a “ticket out”—a portable form of liquidity that can be carried across borders in the event of forced displacement.
Blockchain as a Conflict Barometer
The report also identifies a clear correlation between military escalation and spikes in crypto activity. Transaction peaks coincided with:
- Iran’s missile strikes against Israel in October 2024;
- cyberattacks on Iran’s largest exchange, Nobitex, and Bank Sepah during the so-called “12-day war” in June 2025.
In effect, blockchain data has become a real-time barometer of geopolitical stress, revealing dynamics that official statistics can no longer credibly capture.
“For Iranians, cryptocurrency is not just a way to bypass sanctions. It is a way to exit a system collapsing under the weight of an increasingly desperate regime,” Chainalysis analysts note.
Crypto’s Dual Role in Authoritarian States
Iran’s case underscores the dual nature of cryptocurrency in authoritarian environments. For citizens, it acts as a lifeline—a tool for financial freedom and survival. For the state, it has become a powerful mechanism for illicit finance and sanctions evasion.
In this context, blockchain analysis is emerging as one of the few reliable methods to assess the true economic and political condition of regimes where official data has long lost credibility.
Infolink: minfin.com.ua