Tether and Georgia launch GEL₮, Lari stablecoin

Georgia and Tether announced on May 25, 2026 that they will launch GEL₮, a stablecoin pegged 1:1 to the Georgian lari and issued by Tether with government backing.

The token will be issued on Tether’s existing infrastructure and operate within Georgia’s new digital asset regulatory framework.

Officials said GEL₮ will be fully backed by lari reserves. Specific details on reserve composition, custody arrangements and audit procedures were not included in the announcement and will be released later.

Tether will handle issuance and technical operations while the Georgian government has provided formal endorsement and regulatory backing. The project is structured as a privately issued, government-backed stablecoin rather than a central bank digital currency; operational control and issuance remain with a private company rather than the central bank.

Prime Minister Irakli Kobakhidze and National Bank of Georgia President Natia Turnava issued statements endorsing GEL₮. Tether CEO Paolo Ardoino described the arrangement as “placing Georgia’s national currency on digital asset rails within a purpose-built stablecoin regulatory framework.”

The announcement listed four intended uses for GEL₮: lower transaction costs for domestic and international payments, near-instant settlement to replace multi-day wire transfers, programmable payments through smart contracts, and more efficient cross-border value flows for remittances, tourism and fintech corridors.

Georgia was selected in part because of recent policy measures aimed at technology and crypto businesses, including a 1% IT tax for freelancers and founders, streamlined visas for digital nomads and a legal framework for digital-asset operations.

Tether is the largest stablecoin issuer by market capitalization and runs USDT, which has more than $140 billion in supply. The company is positioning its infrastructure to serve institutional and government clients for national-currency stablecoins.

Tether and Georgian authorities said they will disclose further implementation details, including reserve and audit arrangements, as the project moves forward. Market participants typically look for clear audit arrangements and practical redemption mechanisms for national-currency stablecoins; those elements remain to be specified.

Tether and Georgian officials said additional announcements with technical and regulatory details are planned in the coming months.