Iran Considers Using Cryptocurrencies for Overseas Weapons Sales: Report

Iran is exploring the use of cryptocurrencies as a payment method for overseas weapons sales, according to an FT report.

Specifically, the proposal would apply to exports of advanced military hardware, including ballistic missiles, naval vessels, and other sophisticated defense equipment.

Defense Export Agency Outlines Payment Options

The initiative originates from Iran’s Ministry of Defence Export Center, known as Mindex, the state agency responsible for managing the country’s official arms exports.

According to the report, Mindex has indicated its willingness to negotiate contracts settled in digital currencies. In addition to crypto payments, the agency is open to barter arrangements and transactions in Iranian rials, signaling an effort to expand beyond conventional financial systems.

This payment framework was first introduced in 2025, according to the Financial Times. While digital assets are widely used in commercial trade, their proposed role in weapons exports remains uncommon.

As a result, analysts view the policy as a rare public signal from a government willing to link cryptocurrency directly to arms sales.

Scope of Mindex’s Global Operations

Mindex operates as a state-run defense exporter with a broad international footprint. The agency reportedly maintains commercial relationships with buyers in 35 countries.

Information published on its official website highlights an extensive product portfolio that includes missiles, rockets, ammunition, and specialized military vessels. Taken together, this catalog underscores the scale of Iran’s defense export ambitions.

Sanctions Shape Iran’s Trade Strategy

The move comes amid long-standing sanctions imposed by the United States, the United Kingdom, and the European Union. These restrictions target Iran’s missile program, oil exports, and access to global banking networks.

Consequently, with traditional financial channels constrained, Tehran has increasingly relied on alternative trade mechanisms, including barter systems and digital assets such as Bitcoin.

At the same time, sanctions enforcement has intensified. Last month, U.S. authorities announced penalties against 29 vessels accused of facilitating covert Iranian oil shipments. 

According to U.S. officials, the vessels were part of a so-called shadow fleet to bypass restrictions on petroleum exports.

Mindex Downplays Sanctions Impact

Despite the expanding sanctions regime, Mindex has publicly downplayed its impact on arms contracts. 

In particular, statements published on the agency’s website claim that agreements can still be executed without disruption, suggesting that Iran’s policy framework allows deliveries to proceed despite international constraints.

Cryptocurrencies and Iran’s “Shadow Network”

Interestingly, Iran’s reliance on digital currencies predates the current proposal. For several years, the country has used cryptocurrencies to reduce dependence on traditional financial systems.

For context, in September, the U.S. Treasury identified two Iranian nationals linked to more than $100 million in cryptocurrency transactions tied to oil sales conducted between 2023 and 2025. U.S. officials characterized the activity as part of a broader financial “shadow network” supporting the Iranian state.

Taken together, these developments illustrate how Tehran continues to adjust its economic and trade strategies. As sanctions persist, digital assets appear to be playing an increasingly central role in sustaining Iran’s international transactions.