TLDR
- Tether is relocating its operations to El Salvador after receiving a Digital Assets Service Provider license
- The company chose El Salvador for its crypto-friendly regulations and supportive business environment
- Tether aims to strengthen its focus on emerging markets through this move
- The company invested $775 million in Rumble, a video and cloud computing company, in December 2023
- Rumble will open offices in El Salvador and develop operations with local employees
Tether, the company behind the world’s largest stablecoin USDT, has announced plans to relocate its operations to El Salvador. The move comes after the company received a Digital Assets Service Provider (DASP) license that allows it to operate as a stablecoin issuer in the Central American nation.
The relocation represents a major shift for the stablecoin issuer, which has been seeking a permanent base of operations. El Salvador’s crypto-friendly regulatory environment played a key role in Tether’s decision, according to company statements released this week.
Paolo Ardoino, CEO of Tether, explained that the move would enable the company to establish stronger connections in emerging markets.
“This decision allows us to build a new home, foster collaboration, and strengthen our focus on emerging markets,” Ardoino said in an official statement.
The company highlighted El Salvador’s supportive regulatory framework as a crucial factor in their decision-making process. The nation’s forward-thinking approach to digital assets has created an environment where cryptocurrency companies can operate with clear guidelines and institutional support.
Tether’s presence brings substantial financial weight to El Salvador’s growing crypto ecosystem. The company reported billions in revenue during 2024 and holds one of the largest private positions in U.S. debt, making it a valuable addition to the country’s financial sector.
The stablecoin issuer’s move aligns with its strategic focus on developing nations where access to U.S. dollars through traditional banking systems can be challenging. Tether’s USDT stablecoin provides an alternative way for these markets to access dollar-denominated assets.
El Salvador’s position as a cryptocurrency hub continues to strengthen with this development. The nation first made headlines in 2021 when it became the first country to adopt Bitcoin as legal tender, and has since attracted various cryptocurrency-related businesses and investments.
The announcement follows Tether‘s recent investment activities in the region. In December, the company invested $775 million in Rumble, a video and cloud computing company that has also chosen to expand its operations in El Salvador.
Rumble’s involvement adds another layer to El Salvador’s growing tech ecosystem. The company has committed to opening offices in the country and hiring local employees, which is expected to create new job opportunities and contribute to economic growth.
The partnership between Rumble and El Salvador extends beyond private sector development. The company has secured a service agreement to provide cloud computing services for government operations, marking a substantial technological upgrade for the nation’s public sector.
These developments represent a continuation of El Salvador’s strategy to position itself as a leading destination for cryptocurrency and technology companies. The country’s government has consistently worked to create an attractive environment for digital asset businesses.
For Tether, the move to El Salvador provides a stable regulatory framework and a strategic location for accessing Latin American markets. The company’s USDT stablecoin is widely used across the region for remittances, trading, and as a store of value.
The relocation process is in its final stages, according to company statements. Tether has begun establishing its physical presence in the country and working with local authorities to ensure a smooth transition of operations.
El Salvador’s President Nayib Bukele has welcomed the announcement, viewing it as validation of the country’s crypto-friendly policies. The addition of Tether to the nation’s growing list of cryptocurrency companies strengthens its position as a regional hub for digital asset innovation.
The stablecoin issuer’s move is expected to lead to increased investment and job creation in El Salvador’s technology sector. Local officials anticipate that Tether’s presence will attract additional cryptocurrency and blockchain companies to the region.
