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Stablecoin leader Tether has partnered with the Georgian government to launch an official stablecoin called GELT, pegged to the Georgian Lari (GEL). Tether stated that GELT is expected to support cross-border trade payments and digital payments within Georgia, but specific issuance structure, launch timeline, and regulatory implementation details are yet to be announced.
In its official announcement, Tether stated that the partnership is based on Georgia's recently established regulatory framework for digital assets and stablecoins. In March of this year, the National Bank of Georgia (NBG) officially released its stablecoin issuance guidelines, which cover reserve asset management, holder redemption rights, issuer supervision, and anti-money laundering (AML) compliance requirements.
Georgia's central bank takes the lead in establishing a stablecoin regulatory framework.
According to the guidelines published by NBG on March 6, any stablecoin issued in Georgia must obtain prior written consent from the central bank. This framework applies to Virtual Asset Service Providers (VASPs) registered with the central bank, while unregistered entities must complete registration before engaging in stablecoin issuance or related services. NBG explicitly stipulates that stablecoins in circulation must be fully backed by reserve assets that meet liquidity and credit quality requirements.
NBG President Natia Turnava welcomed the partnership, stating that it aligns with the central bank's strategic direction in promoting digital financial infrastructure. Georgian Prime Minister Irakli Kobakhidze said that the collaboration with Tether will help create a more interconnected and transparent financial ecosystem.
However, it is worth noting that this announcement did not specify the legal issuer of GELT, the location of the reserve assets, or whether holders have the right to direct redemption. The absence of these crucial details indicates that the plan is still in the early stages of negotiation.
Tether continues to expand its localized stablecoin footprint.
GELT will join Tether's product line of currency-specific stablecoins, in addition to its flagship product USDT. Tether launched the offshore RMB stablecoin CNHT as early as 2019, followed by the Mexican peso stablecoin MXNT in 2022 (initially supporting Ethereum, Tron, and Polygon), and announced plans in 2024 to issue a stablecoin pegged to the United Arab Emirates Dirham (AED).
In January of this year, Tether launched USAT, a USD stablecoin compliant with the GENIUS Act regulatory standards, in the United States. It was initially listed on exchanges such as Bybit, Kraken, and OKX, demonstrating its strategy of tailoring compliant stablecoins for different markets.
However, Tether is also gradually scaling back its non-core product lines. The euro-denominated stablecoin EURT has ceased issuance, with redemptions ending in November 2025; the offshore yuan-denominated stablecoin CNHT is also expected to terminate its redemption function in February 2027.
The strategic significance of stablecoins in emerging markets
Tether's proactive strategy of developing localized stablecoins in emerging markets reflects the trend of stablecoins expanding from a "dollar-based" model to a "multi-currency ecosystem." As a financial hub in the Caucasus region, Georgia's successful launch of its Larry stablecoin, GELT, would not only provide local residents with a digital currency option beyond the US dollar but also have the potential to become a new channel for cross-border remittances and trade settlements, holding strategic significance, especially for Georgia's economy, which relies heavily on remittances from overseas.
A similar situation is already emerging in Iran. Amid geopolitical instability and the pressure of excessive devaluation of fiat currencies, local residents have largely turned to stablecoins such as USDT as a store of value. Tether's direct cooperation with a sovereign government extends the right to issue stablecoins from purely commercial institutions to the national level, potentially providing a regulatory and cooperative model for other emerging market countries.
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