Georgia, Tether to launch GELT, a lari stablecoin
Georgia and Tether will issue GELT, a stablecoin pegged to the Georgian lari, backed by the government and National Bank of Georgia under a regulatory framework aligned with U.S. law.
Tether announced Monday it will issue GELT, a stablecoin pegged to the Georgian lari, with backing from the Government of Georgia and the National Bank of Georgia. The partners described the plan as placing the national currency on digital asset rails while keeping the token distinct from a central bank digital currency.
GELT will serve as a digital representation of the lari and is intended to enable near-instant settlements and lower transaction costs for domestic and cross-border payments. Prime Minister Irakli Kobakhidze described the project as aiming to create “a more connected, transparent, and digitally empowered financial world.”
Officials emphasized GELT will not be presented as a central bank digital currency. Stablecoins are typically issued by private companies on public blockchain networks, while CBDCs are issued and maintained by central banks.
The government and the National Bank of Georgia spent several years drafting rules for digital assets covering reserve management, redemption rights and issuer oversight. The announcement noted those rules align with provisions in the U.S. GENIUS Act enacted last year.
Tether already issues tokens pegged to the U.S. dollar, euro, British pound, Mexican peso and to gold. Its flagship USDT has a market capitalization approaching $190 billion. GELT is notable for carrying an explicit endorsement from a sovereign government and its central bank, a level of official support that Tether’s other non-dollar tokens have not had.
Georgia allows residents to pay taxes in digital assets that are converted into the local currency. In 2023 the National Bank ran a pilot program with Ripple to explore a digital version of the lari. National Bank of Georgia President Natia Turnava wrote that the bank “welcomes collaboration with global innovators like Tether as part of its broader strategy to advance secure, modern, and internationally aligned digital financial infrastructure.”
The announcement did not include a launch date or technical specifics such as which public networks GELT will use, how reserves will be held, or the mechanisms for users to redeem tokens. Officials noted more information will be released at a later date.
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