Georgia Taps Tether for Official Lari Stablecoin Launch

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Georgia plans to launch an official stablecoin backed by its national currency in partnership with Tether (USDT), in one of the first government-supported efforts to place a sovereign currency directly onto blockchain-based payment rails. The project, called GEL₮, will represent the Georgian lari in digital form and operate under a purpose-built stablecoin regulatory framework. The announcement highlights how governments are increasingly exploring stablecoins as infrastructure for payments and cross-border settlement.

Georgia And Tether Bring the Lari Onchain

According to the announcement published by Tether on May 25, GEL₮ will function as a digital version of the Georgian lari designed to support faster payments, lower transaction costs, near-instant settlement, and programmable financial applications.

Both the Government of Georgia and the National Bank of Georgia are backing the initiative, which is building on several years of regulatory work aimed at creating a comprehensive legal framework for digital assets and stablecoins.

Tether said the project reflects the growing role of stablecoins in global finance. The company noted that its flagship stablecoin, USDT, now carries a market capitalization approaching $190 billion and regularly processes trading volumes that exceed those of major traditional payment networks.

Prime Minister Irakli Kobakhidze described the partnership as part of Georgia’s effort to build a more connected and digitally enabled financial system:

“Together with visionary partners like Tether, Georgia is laying the foundations for a more connected, transparent, and digitally empowered financial world.”

Stablecoin Regulation Moves Closer To U.S. Standards

A notable aspect of the framework is its stated compatibility with emerging U.S. stablecoin legislation, including the GENIUS Act. Officials said Georgia intentionally designed its rules around reserve management, redemption rights, issuer oversight, and anti-money laundering requirements to align with developing international standards.

Tether CEO Paolo Ardoino said stablecoins are increasingly becoming a foundational layer of global finance and argued that regulatory clarity is essential for wider adoption.

“Stablecoins are no longer a niche financial instrument. They are becoming part of the infrastructure layer for global finance. (…) Georgia has moved early to create serious regulatory architecture for digital assets and stablecoins, and that clarity creates the foundation for real innovation and adoption.”

Indeed, the move could strengthen Georgia’s position as a regional hub for digital asset businesses. The country has already implemented systems allowing the settlement of certain tax payments through instant conversion of digital assets into local currency.

Additional details about GEL₮’s rollout timeline and technical implementation are coming later. If successful, the project could provide another example of how governments are beginning to integrate stablecoins into national payment and financial infrastructure.