CEO Paolo Ardoino confirmed the relocation following Tether’s recent licensing as a digital asset service provider in the country.
This move marks the first time Tether will establish a physical headquarters, transitioning from its prior incorporation in the British Virgin Islands. Ardoino and other company leaders also plan to establish their residences in El Salvador.
However, the relocation will not involve all of Tether’s employees, many of whom operate remotely. Over the coming years, the firm intends to hire 100 Salvadorans to support its operations.
Tether’s dollar-pegged token (USDT) dominates the stablecoin market, accounting for nearly two-thirds of the US$212 billion in circulation. Stablecoins, designed to maintain a steady value by being pegged to traditional currencies, have become vital for facilitating transactions within the cryptocurrency market while mitigating exposure to volatility. However, their rapid growth has raised concerns among regulators about potential risks to the broader financial system.
The company has faced scrutiny over its reserves and limited transparency about their composition. Ardoino stated that the majority of Tether’s reserves are managed by Wall Street brokerage Cantor Fitzgerald, which he described as a key partner in maintaining liquidity.
El Salvador’s President Nayib Bukele welcomed Tether’s decision, stressing the country’s commitment to becoming a hub for digital currency trading. Since making Bitcoin legal tender in 2021, El Salvador has positioned itself as a destination for crypto businesses.
While Ardoino noted that Tether considered other potential headquarters locations, regulatory uncertainties, particularly in the European Union and United States, made El Salvador an appealing choice. The move comes as the cryptocurrency market continues to expand, with the stablecoin sector growing approximately 45% over the past year, according to CoinGecko data.
Also Read: President Nayib Bukele flexes El Salvador’s US$362 million Bitcoin gain
Disclaimer: The content on this website is for informational purposes only and does not constitute financial, investment, or legal advice. Always consult a qualified professional before making financial decisions.