Tether is moving to El Salvador and will collaborate with the authorities for innovative projects while pushing for the adoption of stablecoins.
Tether, the firm behind $137 billion stablecoin USDT, said that it is relocating to El Salvador, the first country to adopt Bitcoin as legal tender, and is nearing completion of all the formalities related to the same. The firm has also acquired a Digital Asset Service Provider (DASP) license from the regional authorities.
In an official announcement, Tether called this move another step towards a “journey to foster global Bitcoin adoption.” The firm also commended El Salvador’s approach to digital asset regulation. The reason for relocating to El Salvador, as per the statement, is the Central American nation’s “forward-thinking policies, favorable regulatory environment, and a growing Bitcoin-savvy community.”
Tether’s chief executive, Paolo Ardoino, highlighted that his firm has shifted its focus to emerging markets and will aim for collaborations, adding that 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,” said Ardoino.
With El Salvador’s president Nayib Bukele, the person responsible for the Bitcoin-friendly laws of the Central American country, winning the election in early 2024, such moves were expected as the popularity of cryptocurrencies and Bitcoin alongside stablecoins continues to rise. Bukele promised to reshape the country after securing the victory.
Tether to Build a New Home
Ardoino described El Salvador as Tether’s “new home” and said that it will work with the regional authorities to “empower individuals and businesses through digital currency.” The stablecoin issuer will also upscale its operations in the country, providing people with financial inclusion and pushing for the adoption of USDT.
Tether also confirmed that relocating to a crypto-friendly country will allow it to focus on innovation and thrive, bringing more products for its users. Establishing a headquarters in the Central American country puts the firm at an advantage to its competitors.
As earlier reported by Coinspeaker, digital asset trading platform Bitfinex Derivatives confirmed that it had also acquired a DASP license in El Salvador. The firm will operate under Bitfinex Derivatives El Salvador S.A. de C.V., offering its services to regional users. Notably, Bitfinex was also the first crypto exchange to secure DASP registration in El Salvador in April 2021.
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