Government partners with USDT issuer under new regulatory framework
Georgia’s government has announced a partnership with Tether to launch GEL₮, a stablecoin pegged to the Georgian Lari. The initiative represents one of the first efforts to place a national currency directly onto digital asset rails under a purpose-built regulatory framework.
“This marks one of the first joint efforts to place a national currency directly onto digital asset rails under a purpose-built stablecoin regulatory framework,” according to Tether’s announcement of the partnership.
The stablecoin will be built for compatibility with the GENIUS Act, US legislation enacted last year. Tether, the issuer of USDT, operates the largest fiat-tied cryptocurrency by market cap. The stablecoin sector currently holds a combined market cap of $322.7 billion.
Irakli Kobakhidze, Prime Minister of Georgia, framed the partnership as part of the country’s digital infrastructure expansion. “Together with visionary partners like Tether, Georgia is laying the foundations for a more connected, transparent, and digitally empowered financial world,” Kobakhidze said.
Georgia already operates an advanced system for digital asset payments with regulated intermediaries enabling cryptocurrency-to-local-currency conversion for real-world settlements. The country has moved to establish regulatory clarity around digital assets and stablecoins ahead of broader global adoption.
Paolo Ardoino, CEO of Tether, highlighted Georgia’s regulatory positioning. “Georgia has moved early to create serious regulatory architecture for digital assets and stablecoins, and that clarity creates the foundation for real innovation and adoption,” Ardoino said.
The stablecoin sector has experienced positive regulatory momentum globally and has held up relatively well during recent market downturns. The broader crypto sector, measured by Bitcoin at $77,400, moved 0.7% over the past week.
The source did not specify a release date for GEL₮ or details on the rollout structure. The specific mechanisms of the “purpose-built stablecoin regulatory framework” beyond GENIUS Act compatibility were not clarified.
