Tether, the world's largest stablecoin issuer, in partnership with the Georgian government, plans to launch a new digital asset, "GELT," pegged to the national currency, the lari. This project will be implemented within the framework of the country's new legislative base for digital assets. According to Tether representatives, the GELT stablecoin will serve to develop cross-border trade and digital payments in Georgia. This is reported by Cointelegraph.com .
The Georgian government has recently been actively working on developing strict regulations for digital assets and stablecoins. This regulatory system includes requirements for reserve management, redemption rights, oversight of issuers, and anti-money laundering (AML) measures. In March, the National Bank of Georgia announced requirements for "stable virtual assets," such as full reserve backing and external audits.
Georgian Prime Minister Irakli Kobakhidze emphasized that the partnership with Tether will help build a foundation for a more transparent and interconnected financial world. Natia Turnava, President of the National Bank, welcomed this collaboration as a key part of the country's strategy to develop digital financial infrastructure. So far, no detailed information has been provided regarding the exact launch date of the GELT project or where the reserves will be held.
According to the new rules, issuing stablecoins in Georgia requires written approval from the National Bank. Additionally, all stablecoins in circulation must be 100% backed by reserve assets that meet liquidity and credit quality requirements. These measures are aimed at protecting consumer rights and ensuring compliance with international standards.
The GELT project joins Tether's lineup of assets pegged to other national currencies, beyond USDT. The company previously issued tokens pegged to the Mexican peso (MXNT) and the offshore Chinese yuan (CNHT). Furthermore, a new stablecoin pegged to the United Arab Emirates dirham is planned for release in 2024.
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