Today, Tether announced it will move its headquarters to El Salvador after receiving a digital asset services provider (DASP) license. This is part of the company’s strategy to drive global Bitcoin adoption.
El Salvador just accepted IMF incentives to amend the Bitcoin Law, so the company’s decision represents a consolidation of El Salvador’s position as a cryptocurrency hub.
Tether Moves to El Salvador
Tether has built deep ties with the Central American country over the past few years, but this is a more comprehensive change. On social networks, CEO Paolo Ardoino praise This business decision:
“Very excited about the Tether team moving headquarters to El Salvador. El Salvador is a beacon of freedom and Nayib Bukele is an inspirational leader, leading the nation with love, passion and wisdom,” Ardoino declared.
El Salvador is an attractive destination for Tether, as it is one of the most pro-Bitcoin regions in the world. The stablecoin giant is not the only company considering this move; Bitget received a similar license last month. However, Bitget is only expanding into the country, while Tether is considering a more comprehensive headquarters move.
For Tether, the move to El Salvador has obvious reasons. The company has seriously lost ground in Europe following the recent MiCA regulations. MiCA may not have had a huge impact on the company’s dominance, but it did reduce Tether’s presence in the major cryptocurrency market. However, the Latin United States region may be more conducive to new expansion.
At the same time, this move is also a strong expression of confidence for El Salvador that Tether still sees it as a global Bitcoin hub. After years of conflict, the IMF has offered incentives for the country to soften its maximalist stance.
In a rather surprising development, El Salvador adopted and revised the Bitcoin Law in December. The country is still interested in integrating Bitcoin into its economy, but the situation has changed.
“Told this to customers before but this will definitely have a big impact on El Salvador. I would say El Salvador’s estimated GDP is $34 billion in 2023 according to the World Bank. Tether already has a net profit of 10 billion USD in 2024. It’s crazy,” write analyst James Seyffart on X (formerly Twitter).
In other words, both Tether and El Salvador benefit from this relocation agreement. Tether could regroup after temporary setbacks in the EU and enjoy a more relaxed regulatory environment.
For its part, El Salvador is attracting one of the world’s largest cryptocurrency companies, a key asset for its stated goal. Hopefully a symbiotic relationship will flourish.
