Georgia and Tether Plan to Launch GELT Stablecoin Under New Rules

Key Takeaways:

• Tether and Georgia plan to launch GELT, a stablecoin backed by the Georgian Lari. 
• Georgia’s new stablecoin rules require full reserve backing, issuer oversight, audit, and AML compliance. 
• Key details, such as GELT’s legal issuer, reserve location, and launch date, have not been announced yet. 

Tether, the stablecoin issuer, and the government of Georgia are planning to launch a new stablecoin called GELT. The stablecoin will be pegged to Lari, the Georgian currency. The project is expected to support Georgian payments and cross-border commerce in Georgia. Tether said the structure, rollout, and regulatory details of GELT will be shared at a later stage. 

The announcement marks another step in Georgia’s efforts to strengthen its digital asset sector and build a more modern financial system. 

Georgia Builds Stablecoin Regulatory Framework

The plan follows new rules released by the National Bank of Georgia in March. Under the framework, stablecoin offerings cannot begin without written approval from the central bank. The rules require issuers to fully back stablecoins with reserve assets that meet liquidity and credit quality standards. Issuers must also prepare offering documents and submit them for external auditor verification. 

The framework also focuses on consumer protection, risk management, issuer oversight, and Anti-Money Laundering compliance. 

GELT Launch Timeline Unclear

Georgian Prime Minister Irakli Kobakhidze said the partnership with Tether could help create a more connected and transparent financial system. National Bank of Georgia President Natia Turnava also welcomed the collaboration as part of the country’s digital finance strategy. 

However, several major details remain unclear. The announcement did not confirm who will legally issue GELT, where reserves will be held, whether users will have direct redemption rights, or when the stablecoin will officially launch. 

GELT would join Tether’s non-dollar stablecoin lineup, which has included tokens linked to currencies such as the Mexican peso, offshore Chinese yuan, and the planned UAE Dirham.