Leading Stablecoin Company 'Tether' to Establish Headquarters in El Salvador

The world's largest stablecoin issuer, Tether, is relocating its headquarters and subsidiaries to El Salvador in South America. El Salvador is the first country in the world to designate Bitcoin as legal tender, making it a 'pro-cryptocurrency' nation.

On the 14th, Bloomberg reported that Tether plans to relocate its entity after securing a digital asset service provider license in El Salvador. Tether is currently registered in the British Virgin Islands. Tether's CEO, Paolo Ardoino, stated, "We aim to strengthen our focus on emerging markets by establishing a new headquarters and fostering cooperation," and added, "The management, including myself, may also establish residences in El Salvador."

Stablecoins are virtual currencies that maintain a stable value. In Tether's case, it uses reserves primarily composed of cash equivalent assets like U.S. dollars or U.S. government debt.

El Salvador is a representative pro-cryptocurrency country. President Nayib Bukele of El Salvador was the first in the world to adopt Bitcoin as legal tender in 2021 and purchased Bitcoin with the national budget. He shared CEO Ardoino's post on X (formerly Twitter), saying, "Welcome home." The Salvadoran government currently holds 6,026.18 Bitcoins (approximately 815.29 billion KRW).

Earlier this month, the derivatives division of the cryptocurrency exchange Bitfinex obtained a digital asset service provider license in El Salvador and decided to relocate its business base. Bitfinex stated on X, "We are proud to relocate Bitfinex Derivatives to El Salvador, a country leading the way in building a robust digital economy," and added, "This move will particularly strengthen our mission to provide innovative trading solutions to underserved areas in Latin America."

Meanwhile, Tether is under investigation for alleged violations of international sanctions and anti-money laundering obligations. There are suspicions that the coins they issue have been used to support illegal activities such as drug trafficking, terrorism, and hacking, or to launder funds obtained from such activities.

There is also speculation that the investment firm of Howard Lutnick, co-chair of the transition team for the incoming Trump administration's first Secretary of Commerce, will strengthen cooperation with Tether. Lutnick is known to have changed the mind of U.S. President-elect Trump, who was previously negative about cryptocurrencies.

Reporter Hyein Lee hey@hankyung.com