Tether Partners with Georgia to Launch GEL₮ Stablecoin

Tether and the Georgian government are launching GEL₮, a stablecoin pegged to the Lari, to modernize the nation's financial infrastructure.

The new stablecoin will function as a digital equivalent of the Georgian Lari, aiming to reduce transaction costs, accelerate international transfers, and enable programmable payments within the local digital economy.

Tether stated that the initiative is part of a broader strategy to build blockchain-based financial infrastructure in partnership with national institutions.

The project has secured support at the highest political levels. Georgian Prime Minister Irakli Kobakhidze noted that stablecoins are becoming an “infrastructure layer for global finance,” while Natia Turnava, President of the National Bank of Georgia, welcomed Tether as a key partner in developing the country’s international digital financial framework.

Georgia Positions Itself as a Regional Crypto Hub

This deal comes as Georgia accelerates efforts to establish itself as a leading center for digital assets in the region. The country has already introduced a regulatory regime for Virtual Asset Service Providers (VASPs), allowing crypto companies to operate under the official supervision of the central bank.

According to Tether, the new regime is designed to be “substantially compatible” with upcoming U.S. regulations, including the GENIUS Act, which seeks to create a federal framework for stablecoins. This alignment could facilitate future operational and regulatory compatibility between American and Georgian digital payment systems.

Under local legislation, any company issuing stablecoins in Georgia must maintain a minimum capital of 500,000 Lari, held separately from the reserves backing the token. This requirement is intended to protect customer funds in the event of bankruptcy or a liquidity crisis.

Tether Deepens Ties with State Institutions

For Tether, this partnership represents a rare instance of direct collaboration between a global stablecoin issuer and a sovereign government. The company behind USDT—the world’s largest stablecoin—is increasingly seeking integration with state financial systems as regulatory pressure on the sector grows.

Market analysts observe that the project could serve as a test model for how smaller economies can utilize blockchain infrastructure to modernize payment systems without developing their own Central Bank Digital Currencies (CBDCs).

Georgia already permits citizens and companies to pay local taxes via the automatic conversion of digital assets into fiat currency, as authorities actively promote the growth of the fintech and blockchain sectors.

Tether has not yet disclosed the exact launch date for GEL₮ or the specific blockchain network the token will utilize. The company stated that further technical details and an implementation timeline will be announced at a later stage.