JAKARTA Crypto company Tether plans to move its headquarters to El Salvador. This was revealed by Tether CEO Paolo Ardoino. This step was taken to take advantage of the ambition of the Central American country to become a crypto trading center in the future.
Tether, the world's largest stablecoin, has become the dominant player in the growing stablecoin market. Stablecoins are designed to keep values fixed by linking them to traditional currencies, offering a stable way to move money among cryptocurrencies unaffected by price fluctuations.
Ardoino said that Tether has obtained a license as a digital asset service provider in El Salvador. Together with other founders and managers, Ardoino will also move to the country. Previously, the company was listed on the British Virgin Islands.
"The move to El Salvador will be the first time we have a physical headquarters," Ardoino said, quoted by VOI from Reuters. However, not all of the company's more than 100 employees will move there because most work remotely.
"Tether also plans to hire 100 Salvadorans in the coming years," added Ardoino.
The rapid development of stablecoin markets has sparked regulatorial concerns. They fear growing stablecoin reserves could pose greater risk to the global financial system, as stablecoins act as a liaison between the crypto world and mainstream financial markets.
Tether has previously faced questions about its reserves and has not fully disclosed the location or form of the reserve. The company claims that most of its stablecoin reserves are backed by traditional currencies held at Cantor totaling, a Wall Street brokerage firm.
"We have liquidity in other banks, but most of our T-Bills are in Cantor," explained Ardoino.
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El Salvador Crypto Center
El Salvador has positioned itself as a digital currency trading center. Three years ago, President Nayib Bukele made bitcoin a legal tender, side by side with the US dollar.
"Welcome home," Bukele wrote on social media X in response to Tether's announcement. In another upload, Bukele also invited Rumble CEO Chris Pavlovski to consider moving the video platform's head office to El Salvador.
The Tether (USDT) token, pegged at the US dollar, controls about two-thirds of the total $212 billion stablecoins circulating in the market, according to CoinGecko data. The overall stablecoin market has grown by about 45% in the past year.
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