Tether, the issuer of the $137 billion USDT stablecoin, is relocating its headquarters to El Salvador, a nation known for its crypto-friendly stance, following the necessary regulatory approvals. CEO Paolo Ardoino described this move as a natural progression, enabling Tether to build a new home and focus more on emerging markets. El Salvador's adoption of bitcoin as legal tender in 2021 and its comprehensive regulations have positioned it as an attractive hub for digital asset firms. Tether plans to move its incorporated subsidiaries to El Salvador and will benefit from tax incentives under the country’s new ICT Innovation Law, which provides a 15-year tax exemption for tech firms. This relocation aims to boost El Salvador's status as a crypto hub and could lead to significant financial benefits for Tether, given that the company reported $7.7 billion in net profits during the first three quarters of 2024, approximately 20% of El Salvador's GDP. Meanwhile, El Salvador continues to hold significant amounts of bitcoin, adding to its crypto asset portfolio.

Source 🔗