Georgia reiterates crypto commitment as Tether unveils government-backed GEL₮ stablecoin

Georgia has partnered with Tether to launch the digital asset GEL₮. The Georgian government seeks to develop a digital Lari that runs seamlessly within the blockchain environment.

GEL₮ is set to offer users reduced transaction costs, instant payments, and programmability in payment systems.

Georgia develops a stablecoin banked on digital rails

Based on today’s official announcement, Georgia’s approach aligns with U.S. regulations on stablecoins. This included the GENIUS Act, which could ensure interoperability between its systems and those of the international financial market.

To that end, GEL₮ has been positioned for cross-border trade, fintech development, and digital transactions.

The project is in line with the current position Georgia holds on digital assets. For example, the country already implemented tax payments through instant conversion of crypto coins into the Georgian national currency.

The launch of the GEL₮ would go a step further in promoting programmable financial instruments.

Prime Minister of Georgia, Irakli Kobakhidze, asserts that Georgia is laying the groundwork for a more interconnected, transparent, and digitally enabled financial future.

To that end, Paolo Ardoino, CEO of Tether, emphasized the evolving role of stablecoins. He added that the era of stablecoins is no longer a specialized tool in finance; it’s a critical piece of the finance infrastructure puzzle.

Natia Turnava, President of the National Bank of Georgia, welcomed the collaboration as part of a broader strategy. He added that the bank would like to collaborate with innovative companies globally to foster a state-of-the-art, digital financial architecture.

Georgia’s crypto ecosystem records mass adoption and regulation

Further information on the technology used for GEL₮, its reserves, launch process, and how regulation would be implemented will be announced later. 

Georgia’s crypto ecosystem serves its population of around 3.7 million. In fact, according to the Chainanalysis Global Crypto Adoption Index for 2025, the country ranks 3rd globally in terms of crypto adoption adjusted for population, behind only Ukraine and Moldova.

The adoption is due to a business-friendly environment, cheap electricity for mining, progressive regulatory frameworks and practical applications such as remittances. The annual flow of remittances to Georgia is over $2 billion. Stablecoins such as USDT and USDC are faster and cheaper than traditional wire transfers, which have charges of 7-10%.

The crypto ownership figures vary, but all signals point to a high adoption rate. Triple-A statistics indicate that around 115,000 people in Georgia (2.89%) hold cryptos. According to Statista’s 2025 reports, the penetration rate was estimated at around 14.13%, with 153,000 users, $1.9 million in revenue for the digital assets market, and a revenue per user of $12.1.

The National Bank of Georgia has required VASPs to be registered and to be compliant with AML/KYC standards since the start of 2023. This has led to legitimacy while facilitating innovation. This has been a popular destination for mining operations due to its cheap hydropower, which made the nation well-known worldwide.

Tether USDT dominates the stablecoin ecosystem with record scale in 2026

USDT remains the world’s most widely used stablecoin. It holds a market cap of about $189-190 billion as of late May 2026 and a circulating supply approaching the 190 billion token mark. It continues to trade at near its $1.00 peg, with minor variations, ranging between $0.999-$1.00. USDT remains the #3 coin in market cap.

On average, daily trading volume exceeds $50–70 billion and outstrips multiple established payment networks. Recent figures confirm that there have been gains of about $5 billion within the last month for USDT supply despite losses for competitors such as USDC in the same period.

In the latest Q1 2026 attestation, the total assets of Tether stand at $191.8 billion against liabilities of $183.5 billion, resulting in an excess reserve buffer of $8.23 billion, which is the highest ever recorded. 

For the quarter under review, net profits were $1.04 billion. Most of the earnings from interest on government bonds and other investments. Most of the reserves have been kept in cash and government bonds, with some investment in gold and Bitcoin.

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