Tether CEO Paolo Ardoino stated on October 19 that the company's wallet freeze program has reduced Iran-linked stablecoin transaction volumes by 94% since 2023, citing data in response to recent U.S. Senate scrutiny.
Ardoino said Tether froze relevant wallet addresses an average of four weeks before the U.S. Treasury's Office of Foreign Assets Control issued official designations. He added that in 99% of cases, Tether acted before blockchain analytics firm Chainalysis identified the addresses.
Tether's Market Share Decline
Data from TRM Labs supports the general trend, showing Tether's share of on-chain volume in Iran-attributed wallets fell from 67% in 2025 to 14% by August 2026. The company froze approximately $550 million in Iran-linked tokens during 2026, including $344 million in April and $130 million in July.
Senate Report and Broader Context
Ardoino's statement responds to a September 28 Senate report that raised concerns about Iran's use of Tether's stablecoin. The Democratic staff report reviewed 846 flagged Iran-linked wallets and found that 84% transacted almost entirely in Tether's token. The report characterized the stablecoin as a major financial lifeline for Iran's shadow banking network.
Iran's Central Bank has accumulated approximately $507 million in Tether tokens to support the rial, the country's currency.
U.S. Enforcement Actions
In August 2026, the U.S. launched Operation Economic Outcast, targeting Iran's financial systems. Treasury Secretary Scott Bessent said the U.S. is seeking to seize about $1 billion in Iran-linked crypto assets under the program.
Tether's stablecoin holds more than 60% of the total stablecoin market with a market value of approximately $183 billion, making it the largest stablecoin by volume.
