Tether, the company behind the world’s largest stablecoin USDT, is partnering with the government and central bank of Georgia to launch a new lari-backed stablecoin called GEL₮ (GELT). The initiative marks one of the first major collaborations between a national government and a private stablecoin issuer to create an officially supported digital version of a country’s cy.
According to the announcement, GEL₮ will represent the Georgian lari and is designed to support:
Unlike a traditional central bank digital cy (CBDC), however, Tether says GEL₮ is not being positioned as a state-controlled CBDC system. Instead, it appears to function more like a government-supported private stablecoin built using Tether’s infrastructure and distribution network.
The move is part of Georgia’s larger effort to position itself as one of the world’s leading crypto-friendly jurisdictions. Over the past several years, Georgia has quietly become a major player in:
The country has introduced a digital asset framework specifically designed to attract crypto companies and align with emerging international standards, including aspects of upcoming U.S. stablecoin legislation tied to the GENIUS Act. Tether executives praised Georgia for moving early on crypto regulation and creating what they described as “serious regulatory architecture” for stablecoins and digital assets.
Government officials, including Prime Minister Irakli Kobakhidze and National Bank of Georgia President Natia Turnava, publicly supported the initiative as part of the country’s broader digital finance strategy.
The launch is significant because it pushes stablecoins deeper into sovereign financial infrastructure. Until now, most stablecoins have primarily been:
GEL₮ represents something different, a nationally supported local-cy stablecoin integrated into a country’s financial modernization strategy. Rather than creating a digital dollar substitute, Georgia is attempting to place its own national cy directly onto blockchain payment rails.
That could allow:
The initiative also shows how governments are increasingly warming up to private stablecoin issuers instead of building fully state-controlled systems from scratch.
The Georgia partnership is part of Tether’s rapidly expanding global strategy. In recent months, Tether has expanded into:
The company recently launched a U.S.-regulated stablecoin called USAT in partnership with Anchorage Digital, while also investing heavily into mining infrastructure and blockchain-based financial systems globally. Now, with Georgia’s support, Tether is effectively becoming part of national-level financial infrastructure rather than simply operating as a crypto trading liquidity provider.
Despite the excitement, several important details about GEL₮ remain unclear. Tether and Georgian officials have not yet fully explained:
Critics also continue raising broader concerns surrounding stablecoins, including:
Tether itself has faced years of scrutiny over reserve disclosures and auditing practices, although the company has continued growing into the dominant stablecoin issuer globally.
Georgia’s partnership with Tether highlights a major shift happening across global finance. Governments are increasingly experimenting with blockchain-based payment infrastructure without fully relying on central bank digital currencies. Rather than competing directly against private stablecoins, some countries now appear willing to collaborate with them.
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