Tether Relocates to El Salvador: A Strategic Move for Future-Focused Regulation

Stablecoin issuer Tether has announced its relocation to El Salvador, the first country to adopt Bitcoin as legal tender.

On January 13, Tether released an official statement confirming that the company and its subsidiaries have obtained Digital Asset Service Provider (DASP) licenses in El Salvador and are finalizing all procedures to complete the move. Tether also revealed plans to establish its first offline headquarters in the country.

According to the local cryptocurrency regulatory authority, the National Digital Assets Commission (CNAD), Tether subsidiaries “Tether NA El Salvador” and “Tether International El Salvador” were granted regulatory approval last August to conduct most cryptocurrency-related activities locally.

An insider familiar with the matter told CoinDesk that Tether's entities were previously registered and licensed in the British Virgin Islands (BVI). However, the move to El Salvador will not impact Tether's operations in Lugano, Switzerland.

Tether described the relocation as a significant step in its mission to promote global Bitcoin adoption. "We take pride in establishing our headquarters in a jurisdiction that embraces innovation and supports our long-term vision," the company stated.

Tether emphasized that El Salvador is quickly emerging as a global hub for digital assets and technological innovation. The company praised the nation's forward-thinking policies, favorable regulatory environment, and Bitcoin-friendly community, calling it an ideal destination for innovative financial enterprises.

El Salvador’s Bitcoin-centric economic policies align with Tether’s mission to empower individuals and businesses through Bitcoin. By relocating, Tether aims to increase flexibility in exploring innovative solutions, leverage supportive regulatory frameworks, and expand efforts to promote Bitcoin and stablecoin adoption in underbanked regions.

Tether CEO Paolo Ardoino called the decision "a natural progression," highlighting the company's commitment to establishing a new base and collaborating with countries that share its vision of financial freedom and resilience through decentralized technologies.

"El Salvador is a beacon of innovation in the digital asset space," Ardoino said. "By rooting ourselves here, we aim to support global communities and drive financial inclusion through Bitcoin and stablecoin adoption."

Matthew Sigel, Head of Digital Asset Research at investment firm VanEck, noted that Tether generated $10 billion in net income last year, equivalent to 35% of El Salvador’s GDP. He added that Tether would benefit from El Salvador’s new ICT Innovation Law, which offers tax incentives such as a 15-year exemption on income, property, and capital gains taxes for blockchain and tech companies.

The relocation signifies Tether’s growing focus on emerging markets and solidifies El Salvador’s role as a leader in digital financial innovation.