Digital asset issuer Tether and the government of Georgia have officially announced the development of GELT, a new stablecoin pegged to the lari, the national currency of the Eurasian country. The announcement, disclosed on Monday, May 25, 2026, states that this digital asset will operate fully under the virtual asset regulatory framework recently established by local financial authorities.
According to the official announcement from Tether, the strategic initiative aims to significantly bolster cross-border commerce and streamline digital payment infrastructure across the region. The participating entities indicated that specific details regarding the technological structure, final launch conditions, and detailed regulatory implementation of this digital asset will be disclosed at a later date.
This strategic move by the company occurs during a broader phase of expansion for its global infrastructure, despite ongoing market complexities. In fact, the organization’s flagship token, USDT, achieved a major financial milestone at the close of the previous year, when it hit a record market capitalization of $187.3 billion during the fourth quarter of 2025.
This growth consolidated despite a generalized contraction across the broader cryptocurrency markets. The current cooperation with the Georgian government represents an effort to replicate this liquidity model within an alternative sovereign fiat currency, capitalizing on the growing interest among emerging economies to deploy blockchain-based instruments for daily commercial transactions.
Regulatory framework of the National Bank of Georgia
The development of the GELT stablecoin is directly grounded in recent financial oversight actions undertaken by the National Bank of Georgia (NBG). On March 6, 2026, the central banking institution published strict guidelines designed to order the local cryptocurrency sector. In this regard, financial authorities indicated that the new regulations aim to protect consumer rights, improve operational risk management, and ensure strict compliance with international anti-money laundering standards. Under this new legal scheme, the public offering of any stablecoin within the national territory is strictly prohibited without prior, explicit written consent granted by the National Bank of Georgia.
On a global scale, the corporation has consolidated a massive user base, though it remains under scrutiny from traditional rating agencies. The firm recently surpassed 534 million users worldwide, an achievement that temporarily coincided with sector-wide discussions after an S&P rating downgrade sharpened ongoing concerns regarding the composition of the company’s reserves and the long-term sustainability of its peg mechanisms.
Despite these international controversies, political authorities in Georgia have openly endorsed the agreement. Georgian Prime Minister Irakli Kobakhidze asserted that the strategic alliance with the issuing firm will decisively help lay the groundwork for a more connected, efficient, and transparent global financial environment. Furthermore, Natia Turnava, Governor of the National Bank of Georgia, stated that the central bank welcomes such public-private collaborations, which form an integral part of its state agenda to boost the modernization of the country’s digital financial infrastructure.
The operational framework designed by the central bank details rigorous conditions for issuers of digital assets. As stipulated in the official stablecoin regulatory document, any entity intending to launch a stable virtual asset in the jurisdiction must fulfill a 100% full backing requirement using reserve assets characterized by high credit quality and immediate liquidity.
Furthermore, the regulation obligates Virtual Asset Service Providers (VASPs) registered with the entity to meticulously prepare all initial public offering documentation and submit it to thorough verification by independent external auditing firms. Financial enterprises operating within the nation that do not yet hold formal VASP status with the regulator must mandatory complete this registration before launching any commercial offerings or providing services related to these fiat-indexed instruments.
Evolution of Tether’s non-USD stablecoin portfolio
The GELT project will join a more specialized division within Tether’s product portfolio, which focuses on stablecoins that do not utilize the United States dollar as a reference asset. This geographic diversification strategy has important precedents in the company’s operational history. In 2022, the organization introduced the MXNT token, a digital version pegged to the Mexican peso that features initial operational support across the Ethereum, Tron, and Polygon networks.
Previously, in 2019, the firm created the CNHT token, indexed to the offshore Chinese yuan, subsequently expanding its usability to the Tron blockchain. Additionally, during 2024, the company announced advanced plans for the development of a crypto asset directly tied to the United Arab Emirates dirham, backed by liquid reserves physically located within the Middle Eastern nation.
Additionally, the issuer has continuously adjusted its market offerings to adapt to changing continental regulations. In January 2026, the company launched the USAT token, a dollar stablecoin fully regulated under United States laws and aimed exclusively at satisfying the demands of its domestic market. Concurrently, Tether has proceeded with the orderly retirement of other alternative fiat assets; the minting of its euro-indexed token, EURT, formally ceased, and its redemption processes ended definitively in November 2025. Similarly, the company confirmed that the CNHT token, tied to the offshore yuan, will cease to be redeemable starting in February 2027.
Regarding the new development in the Caucasus, the official announcement on May 25, 2026, left several key technical gaps: it did not formally specify the legal entity responsible for the lawful issuance of GELT, the banks or financial institutions where the lari reserves will be safeguarded, or whether commercial users will have direct contractual redemption rights against the parent company. Likewise, the technology corporation did not provide a definitive schedule or timeline with concrete dates for the technical deployment of the asset across exchange markets.
This article is for informational purposes only and does not constitute financial advice.
