13 January 2025 – Tether, the issuer of the $137 billion USDT stablecoin, has announced plans to establish its global headquarters in El Salvador, solidifying its commitment to emerging markets and innovation.

Tether's relocation to El Salvador follows regulatory approval from the country's National Commission of Digital Assets (CNAD). The move includes incorporating subsidiaries and creating a brick-and-mortar headquarters, a first for the company, which had previously operated primarily out of the British Virgin Islands.

Tether CEO Paolo Ardoino stated, "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. El Salvador represents a beacon of innovation in the digital assets space."

This relocation aligns with El Salvador’s progressive Bitcoin policies, which include adopting Bitcoin as legal tender in 2021 and offering significant tax incentives for technology firms under the ICT Innovation Law. The law provides a 15-year exemption on income, property, and capital gains taxes, creating a favorable environment for Tether and other digital asset companies.

El Salvador, under President Nayib Bukele, has emerged as a hub for Bitcoin innovation. The country has introduced comprehensive regulations to attract Bitcoin firms, positioning itself as a leader in global financial innovation. It currently holds over 6,000 Bitcoin, worth approximately $550 million, demonstrating its commitment to the digital economy.

Matthew Sigel, head of digital asset research at VanEck, noted that Tether's move leverages these policies, enhancing its ability to drive financial inclusion and innovation in underserved regions.

Tether’s relocation underscores its ambition to advance Bitcoin adoption globally. With $7.7 billion in profits reported in the first three quarters of 2024—equivalent to 20% of El Salvador's GDP—the company's presence could have significant economic implications for the nation.

Tether also continues to focus on expanding its operations in emerging markets, supporting financial inclusion through its stablecoin and Bitcoin initiatives. The company’s move aligns with its vision of leveraging decentralized technologies to empower individuals and businesses worldwide.

As Tether integrates into El Salvador’s regulatory and business environment, it plans to collaborate closely with the government and local communities. The company aims to drive innovation, enhance operational efficiency, and support El Salvador's position as a global Bitcoin leader.

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