Tether, the world’s largest stablecoin issuer, announced today it will launch a stablecoin called GELT that represents the Georgian Lari with support from the Georgian government [1, 2, 3, 4]. The company described GELT as a "digital representation of the Georgian Lari" that aims to facilitate cross-border trade, fintech innovation, and digital payments [1, 2, 3, 4].
Tether has not disclosed if GELT will be classified as a central bank digital currency or detailed the precise nature of its partnership with Georgian authorities [1, 2, 4]. Officials including Georgia’s Prime Minister Irakli Kobakhidze, National Bank head Natia Turnava, and parliament member Vakhtang Turnava expressed public support for Tether and financial innovation [1].
Tether currently has nearly US$190 billion in circulation for its US dollar-pegged stablecoin, while tokens pegged to other currencies, such as the Mexican peso, have much smaller circulation amounts—less than US$20 million [1]. Georgia, a country of about 3.7 million people, is recognized as a top destination for cryptocurrency mining and is attractive to digital asset firms due to stablecoin-friendly regulations from the National Bank of Georgia [1].
Stablecoins are cryptocurrencies pegged to traditional currencies and largely used for trading rather than broad payment acceptance [1, 2, 4]. The Bank for International Settlements has warned about potential risks from privately issued stablecoins to financial stability and monetary sovereignty [1, 2, 4].
Tether said it collaborated for several years with Georgia’s legislature, regulators, and central bank to develop GELT [3]. The company stated GELT will enable "lower transaction costs, near-instant settlement, programmable payments" and other benefits [3].
More information on GELT’s technical structure, rollout schedule, and implementation plans will be announced later [1, 2, 3, 4].
