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Tether, the issuer of the world's largest stablecoin USDT, is relocating its global headquarters to El Salvador, marking a significant step in its strategy to promote Bitcoin adoption and expand its reach in emerging markets, the company announced on Monday.
Tether also secured a Digital Asset Service Provider (DASP) license in the country, further legitimizing its operations within El Salvador's progressive regulatory framework.
El Salvador has positioned itself as a hub for digital asset innovation, with policies that encourage the use of Bitcoin and other cryptocurrencies. Tether sees country as an ideal environment for developing and implementing cutting-edge financial solutions, with its move signifying a deepening relationship with a nation actively embracing the potential of blockchain technology and digital currencies.
“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 in terms of financial freedom, innovation, and resilience but is also reinforcing our commitment to empowering people worldwide through decentralized technologies,” said Paolo Ardoino, CEO of Tether.
Tether's relocation is driven by several strategic objectives, the company explained. First, it aligns with El Salvador's Bitcoin-centric economy, reinforcing Tether's mission to empower individuals and businesses through digital assets. Second, it provides a strategic base for expanding its operations in emerging markets, where access to traditional financial services is often limited. By establishing a physical presence in El Salvador, Tether aims to better serve underserved regions and promote financial inclusion through Bitcoin and stablecoin adoption. Finally, the move provides Tether with greater operational agility and the freedom to innovate within a supportive regulatory and business environment.
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"This decision is a natural progression for Tether as it allows us to build a new home, foster collaboration, and strengthen our focus on emerging markets," Ardoino, said.
The company plans to collaborate closely with the Salvadoran government, businesses, and local communities to further develop the country’s fintech ecosystem and contribute to the future of financial technology.
Tether previously announced record-breaking profits for the third quarter of 2024 of $2.5 billion, contributing to a 2024 nine-month consolidated profit of $7.7 billion. The company’s investment arm, Tether Investments, has further expanded its portfolio to $7.7 billion, with investments in various sectors including renewable energy, Bitcoin mining, AI, telecommunications, and education.
In late 2024, the company pumped $775 million into Rumble (Nasdaq: RUM), a prominent video-sharing platform known for its commitment to free speech, aiming to bolster decentralized media by aligning Rumble's video platform and cloud services with Tether’s blockchain-centric vision.
