Georgia, Tether to Launch GEL₮ Lari Stablecoin on Tether Rails

On May 25, the Government of Georgia and Tether announced plans to launch GEL₮, a stablecoin pegged to the Georgian lari that will operate on Tether’s private stablecoin rails.

The announcement described GEL₮ as part of Georgia’s digital asset framework and the “official stablecoin of Georgia.” The announcement stated the token is intended to lower transaction costs, settle near instantly, enable programmable payments and support cross-border commerce and fintech development.

The project pairs Tether’s global stablecoin infrastructure with regulatory backing from the National Bank of Georgia. In March, the central bank issued rules for initial stablecoin offerings that require registered virtual asset service providers to operate within the regulator’s framework and ban stablecoin offerings in Georgia outside that system. The announcement framed GEL₮ as state-backed infrastructure rather than a stand-alone trading instrument.

Tether’s USDT token had roughly $189 billion in market capitalization and tens of billions of dollars in daily volume around the time of the announcement. Tether issues tokens on multiple blockchains; the partnership links that operational footprint with Georgia’s regulatory framework.

The announcement left several implementation details unspecified. It did not identify which entity will issue GEL₮, how responsibilities will be divided between Tether and Georgian authorities, where reserve assets will be held, how often reserve holdings will be reported, or the exact redemption process for holders converting GEL₮ back to fiat lari.

The partners did not name which wallets, exchanges or payment processors will support GEL₮, nor did they explain how custody, freeze powers and compliance with law enforcement requests will be handled across networks.

Those items affect how businesses and consumers could use the token for payroll, supplier payments or remittances and how holders would exit back to lari.

The announcement said Georgia’s rules were designed for substantive compatibility with the U.S. GENIUS Act. The U.S. statute requires permitted payment stablecoin issuers to maintain identifiable reserves backing outstanding payment stablecoins on a one-to-one basis with specified liquid assets. Georgia can mirror those reserve, redemption and oversight categories; market participants will assess whether the rules produce enforceable rights and recognition by foreign banks, exchanges and payment providers.

Georgian authorities and Tether said further technical and legal details will be released as the project moves toward implementation.