Iran faces widespread protests amid a collapsing rial and increased internet restrictions, leading citizens to increasingly rely on stablecoins like Tether. Iranian authorities have imposed caps on stablecoin holdings, yet illicit use persists, notably by the Islamic Revolutionary Guard Corps (IRGC), which reportedly moved over a billion dollars’ worth of stablecoins via front companies. Over the past two weeks, protests have intensified as the rial depreciates against the US dollar, and the government has responded with internet shutdowns to curb unrest. Tron-based Tether has emerged as the most utilized asset in the country, enabling residents to hedge inflation and systemic risks.
Venezuela’s economic crisis has driven widespread adoption of USDT, with many citizens relying on stablecoins for daily transactions amid hyperinflation and distrust in the banking system. Reportedly, Petroleos de Venezuela now conducts around 80% of its oil transactions in Tether to avoid sanctions imposed in 2020. The use of stablecoins facilitates seamless international payments and offers an alternative to the challenging local financial infrastructure. Tether has been working closely with U.S. authorities to combat misuse, blacklisting thousands of wallets involved in illicit activities.
Between 2023 and late 2025, the company has reportedly frozen assets worth over $3.3 billion, including $1.75 billion on the Tron network. Recently, the firm added another $182 million to this figure, though it remains unconfirmed whether these actions directly relate to Iran or Venezuela. This ongoing tension between regulatory efforts and illicit financial flows highlights the complex role stablecoins play in both providing financial stability and enabling sanctions evasion.
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