Since the beginning of the Iran war, Tehran has cut off the Strait of Hormuz.

The critical maritime choke point, which handles 20 per cent of the world's oil trade, has been a key leverage point for Tehran.

Now, Iran has unveiled its 'Hormuz safe' – a Bitcoin-backed scheme that would offer ships 'safe passage' through the Strait in exchange for cryptocurrency. Iranian authorities have said that the 'Hormuz safe' could raise as much as $10 billion (Rs 96,610 crore)  in revenue.

The development comes as negotiations between Washington and Tehran continue, with neither side seemingly willing to give way. It also comes in the backdrop of reports that maritime security firms are warning that scammers are already impersonating Iranian officials and demanding crypto payments for fake "safe passage" clearances.

But what do we know about this 'Hormuz safe'? How would it work?

What we know

According to Yahoo Finance, 'Hormuz Safe' is a digital maritime insurance platform. It was allegedly developed by Iran's Ministry of Economy in mid-May 2026. The idea is to provide ships traversing through the Strait of Hormuz and the Persian Gulf and their cargo with insurance. Collisions, cargo damage, accidents, and environmental incidents will be covered by the 'Hormuz safe'.

According to Moneycontrol, the 'Hormuz safe' will first be made available to Iranian shipping companies and cargo owners. "The shipment will be covered from the moment of confirmation and a signed receipt will be given to the owner," the website quoted Iranian authorities as saying.

Authorities have not clarified whether this is different from the toll system Iran has already put in place for ships passing through the Strait of Hormuz. There are reports that some owners have paid Iranian authorities as much as $2 million (19.32 crore) per ship to allow their vessels to clear the Strait. As per Yahoo Finance, shipping operators have been paying in Bitcoin, USDT, or Chinese yuan.