Tether to Relocate to El Salvador

Tether has announced that it is “about to complete all formalities” required to relocate to El Salvador after acquiring a Digital Asset Service Provider (DASP) license.

> “El Salvador is rapidly establishing itself as a global hub for digital assets and technology innovation,” Tether stated on Monday. The country boasts forward-thinking policies, a favorable regulatory environment, and a growing Bitcoin-savvy community, making it an ideal destination for firms leading the digital finance revolution.

This announcement follows Bitfinex Derivatives’ decision to move its operations to El Salvador after also obtaining a DASP license.

El Salvador made history in 2021 by becoming the first country to adopt bitcoin as legal tender. However, a Financial Times report from December indicated that the nation plans to ease its policy which required businesses to accept bitcoin as legal tender as part of an agreement with the IMF.

As the issuer of the world’s largest stablecoin by market cap, Tether’s move to El Salvador aims to bolster its efforts in promoting financial inclusion by leveraging bitcoin and stablecoin adoption in underserved areas.

> “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,” Tether CEO Paolo Ardoino remarked. He further noted that, “El Salvador represents a beacon of innovation in the digital assets space. By rooting ourselves here, we align with a country that shares our vision of financial freedom, innovation, and resilience, while also reinforcing our commitment to empowering people worldwide through decentralized technologies.”

As of May 2024, El Salvador holds 5,750 bitcoins, valued at approximately $530 million. Tether’s USDT stablecoin boasts a market cap of $137 billion, per data from The Block.