Tether, the issuer of the world’s largest stablecoin USDT, has announced a landmark partnership with the Government of Georgia to launch GEL₮, a stablecoin fully backed by the Georgian lari. The project, revealed on May 25, 2026, puts a national fiat currency onto digital asset rails under a dedicated regulatory framework – one of the first such arrangements globally.
GEL₮ is designed to dramatically lower transaction costs and enable near-instant settlement for payments, both domestically and across borders. Tether emphasizes that the token will support programmable payments and digital value transfers, targeting use cases in fintech, cross-border commerce, and regional remittances. It is not a dollar-backed asset, but a direct digital representation of the lari.
Georgia has built a comprehensive stablecoin framework covering reserve management, redemption rights, issuer oversight, and anti‑money-laundering compliance. Notably, it is designed for substantive compatibility with emerging U.S. rules, including the GENIUS Act, which is slated to take effect by January 2027. This alignment signals Georgia’s intention to integrate with global standards.
The partnership builds on years of Tether’s engagement in Georgia. In 2023, Tether signed an MoU to support Bitcoin, web3, and P2P infrastructure, and invested in the payment platform CityPay.io, active in over 600 locations. A follow‑up investment in 2024 aimed to expand to 500,000 crypto payment points across Eastern Europe.
Georgian officials welcomed the move. Prime Minister Irakli Kobakhidze called it a step toward a “more connected, transparent, and digitally empowered financial world,” while National Bank of Georgia President Natia Turnava emphasized the strategy for secure modern finance. Tether CEO Paolo Ardoino said stablecoins “are becoming part of the infrastructure layer for global finance.”
The announcement comes as stablecoins gain traction in real‑world payments. USDT’s market capitalization is approaching $190 billion, underscoring the sector’s maturity. Georgia already permits tax payments via instant conversion of digital assets into local currency, and GEL₮ is expected to further accelerate fintech innovation in the country.
