Tether Plans to Move Headquarters to El Salvador to Take Advantage of Crypto Trading Ambitions

This step was taken to take advantage of the ambition of the Central American country to become a crypto trading center in the future.

Crypto company Tether is planning to move its headquarters to El Salvador, Tether CEO Paolo Ardoino has revealed. The move is designed to capitalize on the Central American country's bid to become a future crypto trading hub.

Tether, the world's largest stablecoin, has become a dominant force in the rapidly expanding stablecoin market. Designed to peg their value to fiat currencies, stablecoins offer a stable way to shift money between cryptocurrencies that is largely unaffected by price movements.

Ardoino said that Tether has acquired a license to operate as a digital asset service provider in El Salvador. The CEO will also be relocating to the country, along with other founders and executives. The company was previously listed in the British Virgin Islands.

"The move to El Salvador will be the first time we have a physical headquarters," Ardoino said, as quoted by VOI from Reuters. However, not all of the company's 100-plus employees will be moving there, as most work remotely.

"Tether also plans to hire 100 Salvadorans over the coming years," Ardoino added.

The explosive growth of the stablecoin market has sparked regulatory concerns. They fear that the growing stablecoin reserves could pose a greater risk to the global financial system, given stablecoins' role as a bridge between the crypto world and mainstream financial markets.

Tether has previously faced questions over its reserves and has not fully disclosed the location or form of the reserves. The company claims that the majority of its stablecoin reserves are backed by traditional currencies that are fully deposited with Cantor, a Wall Street brokerage firm.

"We have some liquidity in other banks, but the majority of our T-Bills are with Cantor," Ardoino explained.

Also ReadEl Salvador Crypto HubEl Salvador has positioned itself as a digital currency trading hub. Three years ago, President Nayib Bukele made Bitcoin a legal tender, alongside the US dollar.

"Welcome home," Bukele wrote on social media X in response to the Tether announcement. In a separate upload, Bukele also invited Rumble CEO Chris Pavlovski to consider moving the video platform's head office to El Salvador.

The Tether (USDT) token, which is pegged to the US dollar, has a roughly two-thirds share of the total $212 billion stablecoins in circulation, according to CoinGecko data. The overall stablecoin market has grown by around 45 percent over the past year.

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