Tether Moves Base to El Salvador After Securing Key Licenses
Tether, the world’s largest stablecoin issuer, has announced the relocation of its headquarters to El Salvador. (Photo by Ariel Peña/APHOTOGRAFIA/Getty Images)
Tether, the world’s largest stablecoin issuer, has announced the relocation of its global headquarters to El Salvador.
This decision, driven by record-breaking profits and an aggressive push for global expansion, marks a pivotal moment in Tether’s evolution and signals a deeper alignment with El Salvador’s progressive crypto policies.
Completing All Formalities
On Jan. 13, Tether confirmed its plans to transfer its headquarters and subsidiaries to El Salvador.
The company announced that it has received a Digital Asset Service Provider (DASP) license and has completed all the formalities required to make the move.
In its press release, Tether emphasized El Salvador’s progressive stance on digital assets as a key factor in its decision.
Paolo Ardoino, Tether’s CEO, highlighted the strategic alignment with the country’s innovative policies:
“El Salvador represents a beacon of innovation in the digital assets space. By rooting ourselves here, we are not only aligning with a country that shares our vision regarding financial freedom, innovation, and resilience but also reinforcing our commitment to empowering people worldwide through decentralized technologies.”
El Salvador’s crypto-savvy President Nayib Bukele was also happy about the move, welcoming Tether “home.”
Tether and El Salvador
Tether’s connection with El Salvador runs deep.
The stablecoin issuer has been key to helping the country build out its crypto infrastructure and acting as a crucial partner in its Bitcoin exchange efforts.
This collaboration has been central to El Salvador’s bold move to adopt Bitcoin as legal tender.
While Bitcoin adoption in the country has been slow, President Nayib Bukele remains optimistic despite global pressures.
His government’s strategy of buying Bitcoin daily, which started in November 2022, has only recently managed to turn a profit.
It’s a small win in an otherwise uphill battle, reflecting Bukele’s continued faith in Bitcoin’s long-term promise.
Is Tether’s Move a Progressive or Calculated Strategy?
While Tether positions its relocation as a progressive step towards innovation, industry observers suggest there may be deeper motivations.
Some view the move as a strategic maneuver to sidestep increasing regulatory scrutiny in the United States.
Critics have pointed out Tether’s long-standing reluctance to undergo a comprehensive third-party audit.
The relocation to El Salvador, where the regulatory framework is perceived to be more lenient, raises eyebrows.
A crypto trader on X noted the timing and legal requirements tied to the DASP license:
“El Salvador’s stablecoin law requires an unaudited stablecoin issuer to provide audited financial statements once they have a license. Despite today’s announcement, Tether’s license was actually granted in August ‘24. They have until June 2025 to comply.”
