Tether has announced a partnership with the government of Georgia to issue an official stablecoin pegged to the Georgian lari (GEL), named GELT, targeting cross-border trade and domestic digital payments. The plan is built on the stablecoin regulatory framework published by the National Bank of Georgia (NBG) in March this year.
On March 6, NBG unveiled a comprehensive stablecoin regime, requiring all stablecoin issuers in Georgia to obtain prior written approval from the central bank. Issuers must be registered as virtual asset service providers (VASPs), and all circulating stablecoins must be fully backed by reserve assets meeting liquidity and credit quality standards. The framework also mandates redemption rights for holders and full anti-money laundering compliance.
Central bank, PM back the move
NBG President Natia Turnava welcomed the cooperation, stating it aligns with the central bank's strategy to push digital financial infrastructure. Georgian Prime Minister Irakli Kobakhidze said the partnership will help create a more connected and transparent financial ecosystem. Yet the announcement did not disclose the legal issuer of GELT, where the reserves will be held, or whether holders have direct redemption rights — an indication that the project remains in early-stage negotiations.
Tether expands local-currency stablecoin lineup
GELT will join Tether's suite of non-USD stablecoins. The company launched the offshore renminbi stablecoin CNHT in 2019, the Mexican peso stablecoin MXNT in 2022 (initially on Ethereum, Tron, and Polygon), and in 2024 announced plans for a UAE dirham-pegged stablecoin. In January this year, Tether also issued USAT, a USD stablecoin compliant with the U.S. GENIUS Act, debuting on exchanges such as Bybit, Kraken, and OKX. Meanwhile, Tether is winding down non-core products: the euro stablecoin EURT has ceased issuance with redemption ending November 2025, and CNHT redemption is set to expire in February 2027.
Strategic rationale for emerging-market stablecoins
Tether's push into emerging market local-currency stablecoins reflects a broader shift from a dollar-centric stablecoin ecosystem to a multi-currency one. Georgia, a financial hub in the Caucasus, could benefit from GELT as a digital alternative to the dollar for remittances and trade settlements — a crucial factor given the country's reliance on overseas remittances. A parallel case exists in Iran, where hyperinflation has driven locals to adopt USDT for value preservation. Tether's direct state-level partnership model extends stablecoin issuance from private firms to sovereign governments, potentially setting a template for other emerging economies.