Cryptocurrency giant Tether, the firm behind the world’s largest stablecoin, has announced plans to relocate its headquarters to El Salvador. The decision comes as the Central American nation continues its ambitious drive to establish itself as a global hub for cryptocurrency trading.
Tether CEO Paolo Ardoino confirmed the move during an interview with Reuters, revealing that the company recently secured a digital asset service provider license in El Salvador. “This move to El Salvador will be the first time we’re going to also have a physical headquarters,” Mr. Ardoino stated.
The relocation marks a significant shift for Tether, which was previously incorporated in the British Virgin Islands. While Mr. Ardoino, fellow managers, and the company’s co-founders plan to move their residences to El Salvador, not all of Tether’s over 100 employees will make the transition, as many continue to work remotely. The company, however, plans to hire 100 Salvadorans over the next few years.
Tether’s Growing Influence in the Crypto Market
Tether’s US dollar-pegged token dominates the stablecoin market, accounting for approximately two-thirds of the $212 billion in stablecoins currently in circulation, according to CoinGecko data. Over the past year, the stablecoin market has grown by around 45%, further cementing Tether’s position as a critical player in the cryptocurrency ecosystem.
Despite its prominence, Tether has faced scrutiny from regulators over concerns about its reserves and the role stablecoins play in bridging cryptocurrency with traditional financial markets. Critics worry that the growing reliance on stablecoins could pose systemic risks to the broader financial system.
Mr. Ardoino acknowledged these concerns, stating that the majority of Tether’s reserves are held with Wall Street brokerage Cantor Fitzgerald, led by CEO Howard Lutnick, who has been nominated to head the US Commerce Department under President-elect Donald Trump.
“So we have some liquidity in other banks, but the vast, vast majority of the T-bills (Treasury bills) are in Cantor,” Mr. Ardoino said.
El Salvador’s Crypto Ambitions
El Salvador has positioned itself as a pioneer in cryptocurrency adoption. In 2021, President Nayib Bukele made headlines by declaring Bitcoin legal tender alongside the US dollar. Now, the country is seeking to further cement its status as a digital currency hub.
“Welcome home,” President Bukele wrote on social media platform X, celebrating Tether’s announcement.
The move follows a wave of optimism in the crypto industry after Donald Trump’s election victory in November 2024. Trump has pledged to create a friendlier regulatory environment for cryptocurrency and plans to establish a US Bitcoin strategic reserve.
El Salvador’s proactive approach has already attracted attention from other tech companies. President Bukele recently invited Rumble CEO Chris Pavlovski to consider relocating the video-sharing platform’s headquarters to the country, following a cloud services agreement with his government.
With its decision to move to El Salvador, Tether underscores the nation’s growing influence in the global cryptocurrency landscape.