Georgian government partners with Tether to launch national digital stablecoin

The company Tether has announced plans to launch a new stablecoin called “GEL₮” in partnership with the Georgian government, pegged to the Georgian lari, a move considered one of the first attempts to introduce a national currency into a financial infrastructure based on blockchain technology within a regulatory framework dedicated to stablecoins.

The trend comes amid the growing importance of stablecoins in cross-border payments, transfers and settlements, especially as Tether’s USDT currency has seen huge growth, with a market capitalization of approximately $190 billion.

According to the company, “GEL₮” will act as a digital version of the Georgian lari, allowing faster and cheaper transactions, as well as enabling programmable payments and improving the flow of funds within digital financial systems.

The initiative is expected to help strengthen financial innovation, support regional trade and expand access to digital financial services within Georgia and beyond.

Georgian authorities confirmed that the project follows years of legislative and regulatory work in partnership with the National Bank of Georgia and aims to create a clear legal framework for companies operating in the field of digital assets and stable currencies, in line with international standards related to reserves, compliance and supervision.

Georgia also seeks compatibility with emerging U.S. laws on stable currencies, particularly the draft “Genius Act.”

Georgian Prime Minister Irakli Kobakhidze said that cooperation with Tether will help create a more transparent financial system connected to the digital world.

Paolo Ardoino, CEO of Tether, believes that Georgia has taken an early and important step by establishing a strict regulatory structure for digital assets, stressing that this legal clarity forms the real basis for innovation and widespread adoption.

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