Iran's Central Bank has declared Ayandeh Bank, one of the country's largest private lenders, bankrupt, with its assets absorbed by state-owned Melli Bank. Depositors face uncertainty despite assurances of secure savings, amid the nation's economic turmoil. The crisis highlights bitcoin's appeal as a safeguard against financial instability.
Iran's financial sector experienced a major shock when the Central Bank announced the bankruptcy of Ayandeh Bank on October 26, 2025. Founded in 2012, the bank operated over 270 branches nationwide and had amassed $5.2 billion in losses and nearly $3 billion in debt, as reported by Asharq Al-Awsat. Its assets were promptly absorbed by Melli Bank, which promised depositors that their savings remain "secure." However, public trust is low, with lines forming outside shuttered branches in Tehran, reminiscent of previous banking crises.
The collapse stems from years of poor governance and opaque lending practices. More than 90% of Ayandeh's funds were directed to politically connected projects, such as the debt-laden Iran Mall mega-complex, with loans to affiliated companies that failed to repay. Iran's broader economy exacerbates the situation, marked by hyperinflation, severe recession, U.N. sanctions, and a collapsing rial, according to Reuters. Insured deposits are limited to 1 billion rials—about $930—with payout processes that can drag on for years, leaving many with larger sums at risk of permanent loss.
This event echoes global banking fragilities, such as the 2023 failures of Silicon Valley Bank, Signature Bank, and First Republic Bank in the U.S., where government interventions came after significant disruption. A Morningstar report from October 2025 notes ongoing stress in U.S. regional banks, with rising delinquencies amid inflation and high borrowing costs.
In this context, the crisis bolsters bitcoin's case as a financial hedge. Unlike traditional banks, bitcoin eliminates counterparty risk, operating without central authority or borders. It cannot be frozen or inflated away by governments, serving as "insurance against the system itself" for those facing potential savings evaporation.