Tether, the issuer of the world's largest dollar stablecoin USDT, said in a May 25 blog post that it plans to launch GELT, a Georgian lari stablecoin, with the support of the Government of Georgia.
The token is meant to represent the Georgian lari on blockchains and support payments, settlement, remittances and cross-border transfers, Tether said.
- The announcement doesn't yet give the full structure of GELT, including where reserves will be held, which chains it will use or when users will be able to redeem it.
- Tether said more details on the rollout and regulatory implementation will come later.
The move follows new stablecoin rules from the National Bank of Georgia, which said in March that stablecoins in Georgia must be fully backed by reserves and that the framework covers issuance, redemption and reserve assets.
Georgia's Prime Minister Irakli Kobakhidze said the country is "laying the foundations for a more connected, transparent, and digitally empowered financial world" with partners such as Tether.
- In 2023, Tether signed a memorandum of understanding with Georgia's government to work on Bitcoin, blockchain and peer-to-peer infrastructure in the country.