Central Bank of Iran bought 507 million USDT over the past year…to defend the rial and settle trade payments

JH Kim

Summary

Iran’s central bank said it bought about 507 million USDT over the past year and used it to defend the domestic currency and for international trade settlements.
Elliptic said USDT was received through a crypto wallet linked to Iran’s central bank, and that most of the purchased amount was transferred to Nobitex, the country’s largest cryptocurrency exchange.
Elliptic assessed that Iran’s central bank likely used USDT to defend the rial’s value and secure a means of international trade settlement under sanctions.

The Central Bank of Iran has purchased about 507 million USDT over the past year, using it to defend the country’s currency and for international trade settlements.

According to Decrypt, a crypto-asset (cryptocurrency) news outlet, blockchain analytics firm Elliptic said in a report on the 21st (local time) that it had identified a cryptocurrency wallet linked to the Central Bank of Iran. The wallet was used to receive USDT, and the findings indicate signs of the central bank’s direct involvement.

Elliptic said, “The Central Bank of Iran purchased USDT on two occasions in April and May last year, and most of the acquired amount was transferred to Nobitex, Iran’s largest cryptocurrency exchange.” The USDT was then converted into other assets via cross-chain bridges, a flow that continued through the end of last year.

The report said the total amount ultimately moved through this process reached about 507 million USDT. Elliptic assessed that it is highly likely the Central Bank of Iran used USDT to defend the value of the rial and secure a means of international trade settlement under a sanctions regime.