Cryptocurrency firm Tether, known for its dominant stablecoin USDT , plans to establish its headquarters in El Salvador . The move aligns with the country’s goal to position itself as a hub for cryptocurrency trading, according to CEO Paolo Ardoino. Alongside the company's relocation, Ardoino and other co-founders will also move to the country. El Salvador made headlines three years ago when President Nayib Bukele declared Bitcoin legal tender alongside the U.S. dollar. Now, Tether is leveraging this crypto-friendly environment after receiving a digital asset service provider license in the country. Ardoino emphasized this would mark the company's first-ever physical headquarters , though most of Tether's 100+ employees will continue working remotely. Previously, Tether operated from the British Virgin Islands. Stablecoins, including Tether's USDT, have become a critical link between cryptocurrencies and traditional financial markets. Designed to maintain a steady value by pegging to fiat currencies, they facilitate crypto transactions without exposing users to volatile price swings. Tether's USDT accounts for roughly two-thirds of the $212 billion stablecoin market, which has grown by 45% over the past year, according to CoinGecko data. However, this rapid growth has attracted scrutiny from regulators, who are concerned about potential risks to the broader financial system. Stablecoins, acting as a bridge between crypto and mainstream markets, could introduce vulnerabilities if not properly managed. Tether has faced criticism for limited transparency regarding its reserves but maintains that the majority of its holdings are in U.S. Treasury bills managed by Wall Street brokerage Cantor Fitzgerald. "The vast, vast majority of the T-bills are in Cantor," Ardoino said, with additional liquidity held in other banks. To address regulatory concerns, Tether has stepped up monitoring of its token usage to prevent illicit activities. While exploring options for its headquarters, Ardoino noted the company does not hold a license in the European Union and currently has no plans to operate from the United States. He described the U.S. as an unlikely location, citing regulatory uncertainties and noting it was "quite premature" to speculate on changes under a Trump presidency. Trump’s election has fueled optimism in the crypto sector, with promises of a more favorable regulatory climate and plans for a U.S. Bitcoin strategic reserve. The relocation reinforces El Salvador's ambitions to attract global crypto players. Tether’s presence will likely boost the country’s visibility as a crypto hub. Despite concerns from regulators, the firm continues to play a pivotal role in the stablecoin ecosystem.
