The stablecoin issuer Tether announced that it will move its headquarters and subsidiaries to El Salvador after obtaining a license to operate as a provider of digital asset services and stablecoin issuer in that country.
According to a statement issued this January 13, Tether highlighted that the decision to move to El Salvador responds to “forward-looking policies”a favorable regulatory environment, and an increasingly Bitcoin-savvy local community.
The company highlighted that this move represents a “natural progression” in its evolution, as it will allow it to consolidate in an emerging market, enhance collaboration and strengthen its focus in these territories.
Paolo ArdoinoCEO of Tether, commented: “By rooting ourselves in El Salvador, we not only align ourselves with a country that shares our vision of financial freedom, innovation and resilience, but we also reinforce our commitment to empowering people around the world through of decentralized technologies”.
This move to El Salvador follows news that both Ardoino and Tether COO Claudia Lagorio have acquired property and obtained Salvadoran citizenship in 2024. Despite being contacted for comment, Tether has not responded at the time of the publication.
The role of El Salvador in the crypto ecosystem
The movement takes place in a context where El Salvador has played a leading role in the adoption of Bitcoin, following the announcement of its president, Nayib Bukeleto make the cryptocurrency legal tender in 2021. Since then, several companies and figures in the crypto industry have strengthened ties with the Salvadoran government. In 2023, Tether had already shown its support for the country, announcing its contribution to a renewable energy project that includes geothermal facilities.
Ardoino, for his part, has maintained contact with Bukele, publicly supporting the president’s initiatives to attract new investments.
This move also comes at a time of regulatory challenges for Tether, as Europe implemented new, stricter regulations for digital currencies. The European Union Markets in Crypto Assets Act (MiCA) came into force at the end of 2024 and establishes a regulatory framework for participants in the cryptocurrency industry, requiring issuers of stablecoins like Tether to have licenses in at least one of the EU member countries to operate in the economic market of the area.
In response, several cryptocurrency exchanges, such as Coinbase, Uphold, and Binance, have begun removing support for USDT in the European market. Additionally, Tether has taken steps to withdraw its euro-pegged currency, EURT, from circulation in compliance with the new regulations.
Amid these regulatory challenges, some analysts have suggested that Tether could face similar obstacles in the United States under the new Donald Trump administration, although the president-elect has expressed his intention to foster a favorable environment for cryptocurrencies.
Tether has also shown interest in expanding its presence beyond stablecoins, exploring sectors such as tokenization, Bitcoin mining, and artificial intelligence (AI). In fact, Ardoino has noted that the company is working on developing Bitcoin mining facilities in Latin American countries, such as El Salvador and Uruguay. In collaboration with the government of El Salvador, Tether has already launched a visa program for those who invest at least USD $1 million in Bitcoin or USDT.
In its recent statement, Tether emphasized its intention to “work closely” with the government, businesses and local communities as it strengthens its presence in El Salvador, with the goal of shaping the future of fintech in the country.
Source: Ambito
