Tether to Launch GEL₮ Stablecoin Pegged to Georgian Lari

American company Tether and the Georgian government announced the launch of the GEL₮ stablecoin, pegged to the Georgian lari. The new token is planned for use in payments, international transfers, and settlements.

Tether itself, which issues the largest stablecoin by market capitalization, USDT, will issue GEL₮. In March, the National Bank of Georgia (NBG) granted permission to launch the new asset and approved regulations governing the issuance and circulation of stablecoins in the country.

The regulations establish requirements for any issuers of such assets. The minimum capital of the issuer must be at least 500,000 lari (approximately $182,000), and the results of an independent audit must be disclosed quarterly.

GEL₮ is a completely private stablecoin. The National Bank of Georgia is currently exploring the possibility of issuing its own blockchain-based version of the national currency (CBDC).

In addition to USDT, Tether issues the gold-backed XAUT token and the MXN₮ stablecoin, pegged to the Mexican peso.

The launch timeline for GEL₮, the list of supported blockchain networks, the reserve structure, and the integration process with the banking system have not yet been disclosed. The company stated that the parties have only announced the start of the project, and technical details will be released later.

Earlier, the National Bank of Georgia announced the completion of a competitive selection process among nine technology firms vying to partner with the regulator in the development and launch of the digital lari.