Tether, the crypto giant behind the $137 billion stablecoin USDT, is establishing the group’s headquarters in the Bitcoin-friendly nation-state of El Salvador, the company announced Monday.
The company said the development came after acquiring all necessary licenses as a stablecoin issuer in the country.
The move will see Tether relocate its incorporated subsidiaries to El Salvador and establish its first physical headquarters, a company spokesperson said. Previously, most of the group’s entities were incorporated and licensed in the British Virgin Islands (BVI), a source familiar with the company’s operations told CoinDesk. The move does not affect the company’s existing presence in the Swiss crypto hub Lugano, the source added.
Two Tether-related companies – Tether NA El Salvador, SA de CV and Tether International El Salvador, SA de CV – obtained regulatory approval last August for most crypto-related activities in the country, according to the public registry of the National Digital Commission. Active in El Salvador (CNAD), the government crypto regulator.
“This move is a natural progression for Tether as it allows us to build a new home, foster collaboration and strengthen our focus on emerging markets,” CEO Paolo Ardoino said in a statement. “El Salvador represents a beacon of innovation in the digital asset space.
The relocation constitutes a massive development for El Salvador’s aspirations as a crypto hub. Tether is one of the largest digital asset companies and reported $7.7 billion in crypto net profits during the first three quarters of 2024. This represents around 20% of the country’s annual GDP, according to IMF data.
The move could also bring significant benefits to Tether, benefiting from the country’s tax advantages aimed at attracting tech and crypto companies. This “potential relocation builds on Salvador’s new ICT Innovation Law, which offers technology companies a 15-year tax exemption on income, property and capital gains,” noted Matthew Sigel , head of digital asset research at investment firm VanEck.
Read more: Interview with El Salvador’s top crypto regulator: ‘Developing countries can lead the financial revolution’
Tether’s USDT is the largest stable and popular payment and funds transfer instrument for users in emerging countries.
El Salvador, a small Central American country of more than 6 million people, has become a burgeoning crypto hub under the leadership of President Nayib Bukele. The country introduced bitcoin (BTC) as legal tender in 2021 and created comprehensive regulations on digital assets attracting a range of crypto companies to set up shop. It is also a major holder of Bitcoin, currently holding over 6,000 BTC worth around $550 million, according to Arkham data.
Separately, Rumble (RUM), the video sharing platform in which Tether acquired a stake for $775 million, entered into a cloud services agreement with the Salvadoran government last week.
