Tether, the world's largest stablecoin issuer, has revealed plans to establish its global headquarters in El Salvador after receiving a Digital Asset Service Provider license in the Central American nation.
The company, previously based in the British Virgin Islands, sees the relocation as a strategic move to capitalize on El Salvador's emerging status as a cryptocurrency hub. El Salvador made history in 2021 by becoming the first country to adopt Bitcoin as legal tender.
CEO Paolo Ardoino confirmed that he and other key executives, including co-founders, will relocate to El Salvador. While the company employs over 100 people globally, most staff will continue working remotely rather than relocating to the new headquarters.
The move comes as Tether maintains its dominant position in the stablecoin market. Its USDT token represents approximately two-thirds of the $212 billion stablecoin market, which has grown 45% over the past year according to CoinGecko data. Despite recent delistings from European crypto exchanges, Tether (USDT) shows resilient demand according to new data analysis from CryptoQuant CEO Ki Young Ju.
Tether's decision reflects confidence in President Nayib Bukele's crypto-friendly policies. Ardoino praised Bukele's leadership, noting the country's improved safety and economic vibrancy under his administration.
The company considered other locations but ruled out the United States for now and lacks operating licenses in the European Union. This relocation marks the first time Tether will have a physical headquarters, strengthening its presence in a jurisdiction actively embracing digital asset innovation.
Regarding its reserves, Tether maintains that most of its stablecoin is backed by traditional currency reserves held with Wall Street brokerage Cantor Fitzgerald. The company has also increased monitoring of its tokens to combat illicit finance.
The move aligns with El Salvador's broader strategy to position itself as a global hub for digital finance, potentially attracting more cryptocurrency firms to the region.