Tether announced Monday that it plans to issue GELT, a stablecoin pegged to the Georgian Lari, with support from Georgia's Government and Central Bank, advancing the nation's ambition to establish itself as a crypto hub aligned with U.S. regulations. The initiative represents among "the first joint efforts to place a national currency directly onto digital asset rails" under a purpose-built regulatory framework. Georgia's Prime Minister, Irakli Kobakhidze, stated that with a population of roughly 3.9 million people, the country is actively laying the foundation for "a more connected, transparent, and digitally empowered financial world" through GELT. The stablecoin is positioned as enabling near-instant settlements, lower transaction fees, and a direct bridge between the traditional banking system and Georgia's growing digital economy. Notably, GELT is not being positioned as a central bank digital currency (CBDC), but rather as a private stablecoin on public networks.
GELT Stablecoin Details
Tether described GELT as a digital representation of the Georgian Lari designed to lower transaction fees and accelerate cross-border trade. The stablecoin is being positioned as a turning point for the region, offering citizens direct access to digital asset infrastructure while maintaining connection to Georgia's traditional financial system.
Georgia's Regulatory Framework and Digital Asset Strategy
Tether noted that the Government and National Bank of Georgia had spent years crafting a regulatory framework for digital assets, establishing rules that dovetail with those enacted in the U.S. under the GENIUS Act. The framework includes requirements related to reserve management, redemption rights, and issuer oversight.
Georgia already allows residents to pay taxes in digital assets that are converted into the country's local currency. In 2023, the country's central bank tapped Ripple to pilot a digital version of Georgia's national currency using the Ripple CBDC Platform.
National Bank of Georgia President Natia Turnava stated: "The National Bank of Georgia welcomes collaboration with global innovators like Tether as part of its broader strategy to advance secure, modern, and internationally aligned digital financial infrastructure."
Tether's Stablecoin Portfolio
Tether's industry-leading stablecoin, USDT, commands a market capitalization of nearly $190 billion. The firm already issues tokens pegged to the price of the euro, British pound, Mexican peso, and gold. However, none of those tokens carry the explicit endorsement of a sovereign national government or its central bank, making GELT unique in Tether's portfolio.
