Tether and the government of Georgia are planning to launch a new stablecoin called GEL₮, which will represent the Georgian lari in digital form.
According to Tether, the project aims to place Georgia’s national currency onto blockchain-based financial systems to support faster and more modern digital payments.
The company said GEL₮ is being designed to provide lower transaction costs, near-instant payment settlement, programmable payments, and easier cross-border money transfers.
Unlike USDT, which is backed by the US dollar, GEL₮ will be backed by the Georgian lari and used as a digital version of the country’s local currency.
Officials say the stablecoin could help support digital payments, fintech services, business transactions, and international transfers across Georgia and nearby regions.
The announcement comes as stablecoins continue expanding beyond crypto trading into real-world payment systems and financial services.
Tether noted that its flagship stablecoin, Tether, now has a market value close to $190 billion, making it one of the largest digital assets in the crypto industry.
Georgia has already shown support for digital assets in recent years. The country currently allows some tax payments through systems that instantly convert crypto into local currency.
The GEL₮ project also builds on earlier cooperation between Tether and Georgia. In 2023, Tether signed an agreement with the Georgian government to support Bitcoin, Web3 development, and blockchain startups in the country.
Tether has also invested in Georgia’s digital payment sector through CityPay.io, which operates crypto payment services across hundreds of businesses, hotels, restaurants, and shops in the region.
According to Tether, Georgia’s stablecoin framework includes rules covering reserve management, redemption rights, anti-money-laundering compliance, and issuer oversight.
The company added that the framework is also being designed to stay compatible with upcoming US stablecoin regulations, including the proposed GENIUS Act.
Georgian Prime Minister Irakli Kobakhidze described the partnership as part of efforts to build a more transparent and digitally connected financial system.
Meanwhile, Tether CEO Paolo Ardoino said stablecoins are increasingly becoming part of the global financial infrastructure.
