Iran Launches Bitcoin-Backed Insurance Service ‘Hormuz Safe’ For Hormuz Strait Shipping

Iran has reportedly launched a Bitcoin-backed insurance service dubbed ‘Hormuz Safe’ for companies looking to transit the Strait of Hormuz. This comes amid the U.S.-Iran war, which has effectively shut this major oil chokepoint since the war began in February.

Iran Starts ‘Hormuz Safe’ For Strait of Hormuz Shipping

According to a Bloomberg report, the Iranian government has launched a Bitcoin-backed insurance service for shipping companies that want to transit this major oil chokepoint. The government is reportedly eyeing over $10 billion in revenue, although it has yet to reveal how this service will work.

Notably, this move to launch Hormuz Safe comes as the Strait of Hormuz remains shut due to the U.S.-Iran war. Iran had shut this shipping pathway since the war began in February, while the U.S. has implemented a naval blockade of the Strait since last month.

Bloomberg cited screenshots shared by Iranian media agency Fars, which showed that the Bitcoin-backed service will be for Iranian shipping companies and cargo owners. Iran has resorted to cryptocurrencies, mainly Bitcoin, to evade the U.S. sanctions.

Fars reported that, through Hormuz Safe, Iran will provide cryptographically verifiable insurance policies for shipments through the Persian Gulf, the Strait of Hormuz, and the surrounding waterways, with payments in Bitcoin. “The shipment will be covered from the moment of confirmation and signed receipt will be given to the owner,” the report read.

As part of Hormuz Safe operations, Iran has already established the Persian Gulf Strait Authority (PGSA), which will be responsible for controlling and overseeing shipping through the Strait of Hormuz. In an X post, the PGSA released a statement, stating that

Navigation within the introduced boundaries of the Strait of Hormuz, which were previously determined by the Armed Forces and authorities of the Islamic Republic of Iran, is contingent upon full coordination with these entities, and passage without permission will be considered illegal.

Iran Sends Revised Proposal To The U.S. Through Pakistan

According to an Al Arabiya report, Iran has sent a revised proposal to the U.S. through Pakistani mediators. This comes after U.S. President Donald Trump’s warning yesterday that time was running out for Iran to make a deal.

The Bitcoin price rose on the back of reports of Iran’s revised proposal, in which it is seeking a long-term truce with the U.S. and the gradual reopening of the Strait of Hormuz. The leading crypto is currently trading at around $77,400, up on the day, according to TradingView data.

It is worth noting that Iran’s nuclear program had been a major obstacle to a deal between the U.S. and Iran. However, according to Al Arabiya, the leaked document of the proposal shows that Iran is open to a long-term freeze of its nuclear program instead of dismantling the program. At the same time, Tehran has proposed to transfer enriched uranium to Russia rather than the U.S.