DUBAI, Jan 13 (Reuters) – Tether, the world’s largest stablecoin, is planning to move its headquarters to El Salvador, according to the company’s chief executive. This move is a strategic decision, as the Central American country aims to become a central hub for crypto trading.
Tether CEO Paolo Ardoino confirmed the relocation in an interview with Reuters. He stated that the company recently acquired a digital asset service provider license in El Salvador. Ardoino and the company’s co-founders will also be relocating their residences to El Salvador. The company was previously incorporated in the British Virgin Islands.
“This move to El Salvador will be the first time we’re going to have also a physical headquarters,” Ardoino said. While the company will establish a physical presence, not all of Tether’s 100+ employees will be making the move. Many staff members currently work remotely, Ardoino added. He also mentioned the company’s plan to employ 100 Salvadorans in the coming years.
The burgeoning stablecoin market has drawn scrutiny from regulators. They are concerned that the growing reserves backing stablecoins could expose the broader financial system to increased risks. Stablecoins act as a bridge between the cryptocurrency world and traditional financial markets.
Tether has faced questions regarding its reserves and does not fully disclose the location or form of these holdings. The company claims the vast majority of its stablecoin is backed by conventional currency reserves held with Wall Street brokerage Cantor Fitzgerald. Cantor Fitzgerald CEO, Howard Lutnick, has been nominated to head the U.S. Commerce Department under President-elect Donald Trump.
“So we have some liquidity on other banks, but the vast, vast majority of the T-Bills are in Cantor,” Ardoino explained.
Last year, Tether announced it was increasing its monitoring of token usage to combat illicit finance. When asked about alternative headquarters locations, Ardoino said that the company lacked a license to operate in the European Union and had ruled out the United States for the time being. He added that it was “quite premature” to predict changes that might be implemented under Trump.
Following Trump’s success in the November U.S. election, cryptocurrency prices saw a record surge. Trump has expressed a desire for a more favorable regulatory environment for the crypto sector and has mentioned plans to create a U.S. bitcoin strategic reserve.
El Salvador has been actively pursuing its goal to become a digital currency trading hub. Three years ago, President Nayib Bukele made history by making Bitcoin legal tender in the country, alongside the U.S. dollar.
In response to Tether’s announcement, Bukele wrote “Welcome home” on social media platform X. In a separate post, Bukele invited Rumble CEO Chris Pavlovski to consider moving the video-sharing platform’s headquarters to El Salvador. This invitation came just days after the company announced a cloud services agreement with Bukele’s government.Tether’s eponymous dollar-pegged token (USDT) accounts for approximately two-thirds of the $212 billion worth of stablecoins in circulation, according to CoinGecko data. The overall market has experienced a year-over-year increase of about 45%, based on market data.
