Tether, the dominant issuer in the digital asset ecosystem, has announced a historic partnership with the Government of Georgia to launch GEL₮, a pioneering stablecoin pegged one-to-one with the Georgian Lari (GEL). Announced on Monday, the initiative represents one of the world’s first public-private collaborations to launch a national currency onto blockchain rails under a specialized local stablecoin law.
The move comes as Tether’s flagship USD₮ stablecoin nears a market capitalization of $190 billion. By leveraging Tether‘s established issuance infrastructure, Georgia aims to bypass slow, expensive traditional banking intermediaries in favor of near-instant global settlement networks.
Modernizing Financial Infrastructure with GEL₮
The introduction of GEL₮ is designed to act as a highly efficient digital counterpart to the physical Lari, radically transforming retail payments and corporate treasury workflows. Operating on programmable blockchain networks, the new stablecoin will significantly lower domestic and cross-border transaction fees while enabling near-instantaneous trade settlement.
Local leadership anticipates that the asset will serve as a powerful economic catalyst for the Caucasus region, fueling fintech innovation and optimizing regional e-commerce. Georgia is already highly progressive regarding crypto adoption, allowing citizens to settle public tax liabilities by instantly converting digital assets into fiat. GEL₮ will build directly upon this existing infrastructure, giving local enterprises and international trading partners immediate access to secure, programmable capital.
Strategic Interoperability with the U.S. GENIUS Act
What distinguishes the GEL₮ rollout from standard stablecoin projects is its strict emphasis on a rigid, institutional-grade legal framework. Developed in tandem with the National Bank of Georgia (NBG), the country’s purpose-built regulatory ecosystem mandates stringent parameters around asset reserve management, mandatory redemption rights, and robust Anti-Money Laundering (AML) compliance.
Crucially, Georgia’s digital framework has been specifically architected to maintain compliance with emerging international standards, most notably the United States’ GENIUS Act passed in 2025. This alignment ensures seamless regulatory interoperability between Western digital markets and Georgia’s rapidly evolving fintech sector.
“Together with visionary partners like Tether, Georgia is laying the foundations for a more connected, transparent, and digitally empowered financial world,” stated Prime Minister Irakli Kobakhidze.
Tether CEO Paolo Ardoino added that stablecoins have evolved into a core structural layer for global finance, noting that Georgia’s proactive legislation offers the clarity required for genuine institutional adoption. NBG President Natia Turnava echoed these sentiments, welcoming the collaboration as a strategic mechanism to advance secure, internationally aligned financial systems.
