Tether poised to relocate to El Salvador after securing DASP license

Tether said it's "about to complete all formalities" required to relocate to El Salvador following the successful acquisition of a Digital Asset Service Provider (DASP) license.

"El Salvador is rapidly establishing itself as a global hub for digital assets and technology innovation," Tether said Monday in a post. "With its forward-thinking policies, favorable regulatory environment, and a growing Bitcoin-savvy community, the country has become an ideal destination for companies leading the digital finance revolution."

The news comes a week after Bitfinex Derivatives said it is relocating its operations to El Salvador following its acquisition of a DASP license. 

El Salvador became the first country to adopt bitcoin as legal tender in 2021. The country  plans to ease a policy that required businesses to accept bitcoin as legal tender as part of a deal with the IMF, according to a December report from Financial Times.

Tether, the issuer of the world's largest stablecoin by market cap, said its move to El Salvador positions it to further scale its efforts in supporting financial inclusion by leveraging bitcoin and stablecoin adoption in underserved regions.

"This decision is a natural progression for Tether as it allows us to build a new home, foster collaboration, and strengthen our focus on emerging markets," said Tether CEO Paolo Ardoino. "El Salvador represents a beacon of innovation in the digital assets space. By rooting ourselves here, we are not only aligning with a country that shares our vision in terms of financial freedom, innovation, and resilience but is also reinforcing our commitment to empowering people worldwide through decentralized technologies."

El Salvador owns 5,750 bitcoin as of May 2024, which is worth about $530 million at publication time.

Tether's USDT stablecoin has a market cap of $137 billion, according to The Block's data .