USDT issuer Tether has announced its move to El Salvador after acquiring a Digital Asset Service Provider (DASP) license. The decision is in line with the company’s commitment to support the adoption of cryptocurrency in emerging markets, while taking advantage of El Salvador’s crypto-friendly environment.
Tether secures DASP license for El Salvador operations
Tether has officially announced its intention to establish its physical office in El Salvador after the issuance of the DASP license. This license enables the company to legally engage as a stablecoin issuer and digital asset provider within the country.
Paolo Ardoino, Tether’s CEO, said this is a new step for the company. “We are partnering with a country that has our vision for economic freedom, innovation and stability,” Ardoino said. To achieve this, the company has decided to shift its base of operations in order to innovate and concentrate on emerging markets.
Since El Salvador made Bitcoin legal tender in 2021, the country has attracted many cryptocurrency companies. The country’s policies are progressive, making the country a friendly environment for the crypto and blockchain industry.
Cooperation with the Government of El Salvador
USDT issuer Tether said it will work with the Salvadoran government and businesses to expand financial access and popularize stablecoins. The company plans to give businesses and people the ability to trade through decentralized financial solutions that it will provide through its USDT stablecoin.
The move will allow Tether to expand its operations in El Salvador where there is an increasing number of people who understand Bitcoin. Other Tether executives, including Ardoino and Chief Operating Officer Claudia Lagorio, have already invested in real estate and become citizens of El Salvador in 2024.
Next, the government of El Salvador is open for business for crypto companies as it strives to become one of the world’s leading nations in digital currency. El Salvador’s President Nayib Bukele has been very supportive of cryptocurrency and has stated that it is vital to the economic development of the country that is on the sidelines Michael Saylor’s Micro Strategy BTC strategy.
El Salvador and Tether plan for crypto mining
The shift comes after Bitfinex Derivatives, another major cryptocurrency firm, also received a DASP license in El Salvador. In addition, El Salvador has also adopted positive policies that have increased tourism and attracted foreign investment. According to a report published by Santander US Capital Markets, the country’s tourism is continuously increasing, and this is because of Trump’s acceptance of Bitcoin as in the United States.
The USDT issuer is changing its base as part of its strategy to operate in areas that have a friendly policy towards cryptocurrencies. The company believes so because the proposed move will allow it to concentrate on creating new digital financial products.
As of now, Tether has over $137 billion USDT in circulation making it the largest stablecoin issuer globally. The company has said moving its operations to El Salvador will allow it to expand its services and make digital assets more readily available around the world with plans for more BTC buys.
Tether also revealed that it will support renewable energy projects in El Salvador, such as the geothermal power plant that captures energy from volcanoes. These projects are intended to improve the country’s energy infrastructure while ensuring sustainable crypto mining is achieved.
