Tether and its subsidiaries are “completing all formalities” to relocate to El Salvador after securing a digital-asset service provider licence as a stablecoin issuer, according to a press release.
“[…] The decision marked a step on Tether’s path to facilitating global bitcoin adoption. It strengthens the company’s position in one of the most advanced markets in the world and contributes to more efficient development and deployment of new solutions in a dynamic environment where innovation thrives,” the statement said.
Management says El Salvador is quickly becoming a global hub for digital assets “thanks to forward-looking policies, a favourable regulatory environment and a growing bitcoin-savvy community”.
The company highlighted several advantages of the jurisdiction:
- encouraging bitcoin adoption: El Salvador’s bitcoin-first economy aligns with Tether’s mission to empower individuals and businesses;
- expanding focus on emerging markets: moving the USDT issuer to El Salvador enables the company to scale its efforts to support financial inclusion by leveraging bitcoin and stablecoin adoption in underbanked regions;
- freedom to innovate: the move increases Tether’s flexibility to explore novel solutions in a supportive regulatory and business environment.
“This decision is a natural progression for Tether, as it allows us to build a new home, foster collaboration and intensify our focus on emerging markets. […] El Salvador represents a beacon of innovation in the digital-asset space,” added the company’s CEO Paolo Ardoino.
Following the move, Tether plans to work closely with the government and local businesses.
On January 7, Bitfinex announced the relocation of its derivatives trading service to El Salvador.