Tether Is Relocating To Bitcoin Country El Salvador, Nayib Bukele Welcomes $USDT Issuer 'Home'

Stablecoin giant Tether announced Monday it is nearing the completion of formalities to relocate to El Salvador after it secured a Digital Asset Service Provider (DASP) license and a stablecoin issuer license in the central American nation.

Tether said its relocation to what is dubbed "Bitcoin country" will position the company as a major player in "one of the world's most forward-thinking markets." It marks the most significant move of a leading crypto company to El Salvador, which Salvadoran leadership have been painting as the "Promised Land" for crypto.

Why is Tether Moving Out?

Tether CEO Paolo Ardoino explained that the decision to establish its headquarters in El Salvador was "a natural progression for Tether as it allows us to build a new home, foster collaboration, and strengthen our focus on emerging markets."

He went on to note that El Salvador is a country that represents what it means to be a "beacon of innovation" in the digital assets industry. He said the move aligns Tether with a nation that shares its visions around innovation and financial freedom.

Tether also said in its announcement that it sees El Salvador as a country that fosters technological growth through its forward-looking policies and "favorable regulatory environment."

Notably, Tether has been under scrutiny in recent years amid concerns around compliance, its business practices, and the possibility that it doesn't have the reserves to back its dollar-pegged USDT stablecoin.

Tether Hails El Salvador's Crypto Landscape

According to Tether, El Salvador is fast moving toward becoming a global crypto and tech hub for the following reasons:

• Embrace of blockchain technology
• An ecosystem that attracts investment
• A growing Bitcoin-savvy community
• Favorable regulations for digital asset firms

El Salvador's President Welcomes Tether 'Home'

Nayib Bukele, El Salvador's president known for being an "orange-pilled" leader, was quick to embrace Tether's decision. "Welcome home," he wrote in a re-post of Ardoino's X announcement regarding the move.

Since stepping into power, Bukele has earned both honor (from Bitcoiners) and ire (from the International Monetary Fund and other crypto naysayers) for his wild but potentially feasible vision of El Salvador as a Bitcoin country.

He has repeatedly expressed support for BTC and crypto firms, encouraging businesses in the space to do business in the country.

So far, Tether is El Salvador's biggest fish in terms of market cap. There are other crypto firms based in the country but Tether is undoubtedly the biggest company to make the move.

Tether Isn't the First

While Tether relocating to El Salvador is the biggest news in relation to El Salvador's crypto industry, the stablecoin titan isn't the first to make such a move.

Last week, major crypto exchange Bitfinex announced it was relocating its derivatives arm to the country, which it described as one that is "leading the charge in building a robust digital economy."

Like Tether, Bitfinex Derivatives secured the necessary licensing to operate in the country.

It remains to be seen whether other crypto giants will follow suit now that Tether and Bitfinex have kicked off what could be the biggest "exodus" out of current home turfs into crypto's "Promised Land."