What You Need to Know:
- Tether, which issues the $137 billion USDT stablecoin, is moving its headquarters to El Salvador, known for its friendly stance towards bitcoin, following regulatory green lights.
- CEO Paolo Ardoino mentioned, "This decision is a natural progression for Tether as it allows us to build a new home, foster collaboration, and strengthen our focus on emerging markets."
- El Salvador's legal framework for cryptocurrencies, including the adoption of bitcoin (BTC) as official currency in 2021, has positioned it as an attractive locale for digital asset enterprises.
Tether, the powerhouse behind the $137 billion USDT stablecoin, announced on Monday that it will set up its headquarters in the bitcoin-friendly locale of El Salvador. This decision comes after the firm secured the necessary licenses required for stablecoin operations in the nation.
The relocation sees Tether moving its subsidiaries to El Salvador, marking the establishment of its first physical headquarters. According to an insider, most of Tether's operations have previously been registered in the British Virgin Islands (BVI), with no changes to its presence in Lugano, Switzerland.
Last August, two companies associated with Tether — Tether NA El Salvador, S.A. de C.V. and Tether International El Salvador, S.A. de C.V. — received approval for numerous crypto-related activities from the National Commission of Digital Assets in El Salvador (CNAD), the governing authority for digital asset regulation in the country.
CEO Paolo Ardoino stated that the company aims to leverage El Salvador's ICT Innovation Law, which incentivizes tech firms with a 15-year tax exemption on various sources of income.
This move not only supports Tether but bolsters El Salvador's ambitions to establish itself as a crypto hub. According to notable sources, Tether generated $7.7 billion in net profits by Q3 of 2024, amounting to about 20% of El Salvador's annual GDP. The country holds over 6,000 BTC, valued at approximately $550 million.
More Exciting News About El Salvador
In recent updates from El Salvador, Tether has also acquired a stake in the video-sharing platform Rumble for $775 million and signed a deal for cloud services with the Salvadoran government.
