tl;dr
Stablecoin company Tether is relocating all its subsidiaries to El Salvador after acquiring a Digital Asset Service Provider license in the country. The move aligns with El Salvador's pro-Bitcoin stance and aims to attract tech entrepreneurs. Tether's CEO emphasized the alignment with El Salvador's ...
Tether, the company behind USDT, the most-traded cryptocurrency, has obtained a Digital Asset Service Provider license in El Salvador and is relocating all its subsidiaries to the country. This move aligns with El Salvador's pro-Bitcoin stance and aims to attract tech entrepreneurs. Tether's CEO emphasized the alignment with El Salvador's vision and a favorable regulatory environment.
Tether, known for its USDT stablecoin, faces regulatory scrutiny but expresses openness to independent audits. Tether's relocation follows El Salvador's transformation into a tech-friendly destination, which has also attracted other crypto businesses, with Bitfinex's derivatives arm recently relocating there.
With a market cap of $137 billion, Tether's USDT is the fourth-biggest digital asset by that metric and the biggest stablecoin designed to hold a stable value backed by U.S. dollars, treasuries, and other assets. However, Tether has faced controversies and regulatory scrutiny, with investigations and lawsuits related to transparency of its reserves.
El Salvador, known for making Bitcoin legal tender in 2021, under President Nayib Bukele's leadership, has attracted both praise and criticism for its transformation into a tech-friendly destination. Despite controversies, the move to attract crypto businesses seems to be working, with Bitfinex also relocating its derivatives arm to El Salvador.