Tether, the issuer of the largest stablecoin in the world – US dollar-based USDT, has relocated its business to El Salvador, a central American country that has embraced digital asset innovation.
El Salvador has experienced a renewal in its prospects following the election of a President, Nayib Bukele, who will no longer tolerate excessive crime. At the same time, El Salvador has been at the forefront of adopting crypto-friendly policies, and Tether recently was approved for a Digital Asset Service Provider (DASP) license.
In a release posted on its website, Tether said the move would position it in “one of the world’s most forward-thinking markets,” which fosters the development of Bitcoin.
“El Salvador is rapidly establishing itself as a global hub for digital assets and technology innovation. With its forward-thinking policies, favorable regulatory environment, and a growing Bitcoin-savvy community, the country has become an ideal destination for companies leading the digital finance revolution. By embracing blockchain technology and digital currencies, El Salvador is fostering an ecosystem that encourages innovation and attracts investment in the broader financial and technology sectors. This strategic positioning is helping to shape the future of financial systems, making the country a key player in the global fintech landscape.”
Paolo Ardoino, CEO of Tether, described the decision to relocate a natural progression which strengthens their focus on emerging markets.
“El Salvador represents a beacon of innovation in the digital assets space. By rooting ourselves here, we are not only aligning with a country that shares our vision in terms of financial freedom, innovation, and resilience but is also reinforcing our commitment to empowering people worldwide through decentralized technologies.”
Stablecoins, as well as Bitcoin, have been used by people countries that have experienced rapid inflation and devalued currency. Holding funds in a dollar based stablecoin can maintain value and ease of access as opposed to certain fiat currencies.
Bitcoin bull Anthony Pompliano said via X, that “Tether relocating to El Salvador seems like one of those events that everyone underestimates today, but later it turns out to be more important than we realized.”
Ardoino added that they are “very excited for Tether group relocating in El Salvador. El Salvador is the beacon of freedom and @nayibbukele
is an inspiring leader driving the country with love, passion, and intelligence.”
Tether is the world’s top stablecoin, but it has challenges, as it has not been approved under MiCA in the EU – an important market for stablecoins.
Tether is the number four crypto by market cap at $137 billion. Its nearest stablecoin competitor, USDC by Circle, has a market cap of $45.7 billion.