The crypto-forward nation of Georgia will launch GEL₮, a stablecoin backed by the Georgian lari in partnership with Tether. The ambitious initiative aims to reduce transaction costs, enable near-instant settlement, and make payments programmable, alongside the broader objective of improving the efficiency of cross-border transfers.
Georgia’s government has long pursued a pro-crypto stance. Earlier this year, the country’s central bank introduced regulatory rules for issuing “stable virtual assets,” with the goal of bringing the domestic crypto sector more closely in line with international standards.
GEL₮ is not technically a central bank digital currency (CBDC), since it is issued by a private company rather than a central bank. Instead, the issuer controls the technology, distribution, and reserve management. This model has become increasingly common in the stablecoin sector, where public institutions set regulatory frameworks while private issuers build and operate the payment infrastructure.
While the GEL₮ project benefits from support within Georgia’s regulatory environment, Tether brings scale, distribution reach, and technical expertise as the world’s largest stablecoin issuer.
Tether’s Track Record
Tether’s dollar-backed stablecoin, USDT, is now the world’s third-largest cryptocurrency by market capitalization, after Bitcoin and Ethereum. The company has also launched tokens pegged to other currencies, including the Mexican peso, and has announced plans for a stablecoin linked to the United Arab Emirates’ dirham.
However, its multi-currency expansion has seen setbacks. Tether discontinued issuance of its euro-pegged stablecoin in November 2025, while its offshore Chinese yuan-pegged CNHT is slated to become non-redeemable in February 2027.
Questions Remain
Several key details around GEL₮ remain unresolved. There is no confirmed launch timeline, and the announcement did not specify where reserves will be held or whether holders will have direct redemption rights. These questions will need to be addressed for the project to achieve broad market confidence and adoption.
“It will come down to trust and its utility—in this case, its ability to solve an economic problem,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “It’ll need to have strong transparency for reserves, regulatory, on/off ramps, and so forth.”
“The biggest opportunities remain cross-border payments, remittances, etc. where existing payment rails are slow and expensive,” he said. “If it can do these two things, it has a much higher probability of becoming embedded in existing financial infrastructure.