Stablecoin issuer Tether and the government of Georgia have announced a strategic partnership to launch GELT, a digital token pegged to the Georgian lari. This initiative operates under the nation's newly established digital asset regulatory framework, aiming to facilitate cross-border commerce and streamline digital payments within the region. While the announcement confirms the project's intent, specific details regarding the legal issuer, reserve custody locations, and direct redemption mechanisms for holders remain undisclosed.

Furthermore, a definitive launch timeline has not been provided, though the company indicated that structural and regulatory implementation details will be revealed in subsequent phases.

The GELT project is deeply rooted in Georgia's recent legislative efforts to codify rules for digital assets and stablecoins. In March, the National Bank of Georgia finalized regulations for the initial offering of stable virtual assets, mandating full reserve backing, comprehensive offering documents, and verification by external auditors. Data compiled by Woofun AI shows that these rules explicitly require stablecoin issuers to obtain prior written consent from the central bank before any offering can proceed. The framework applies strictly to virtual asset service providers registered with the central bank, compelling unregistered entities to secure registration before conducting stablecoin offerings or related services.

National Bank of Georgia President Natia Turnava stated that the central bank welcomes this collaboration as a critical component of its strategy to advance digital financial infrastructure.

Concurrently, Georgian Prime Minister Irakli Kobakhidze emphasized that the partnership with Tether would help lay the foundations for a more connected and transparent financial world. The regulatory framework is designed to improve consumer protection, enhance risk management protocols, and ensure alignment with international standards.

Notably, the rules stipulate that all stablecoins in circulation must be fully backed by reserve assets meeting rigorous liquidity and credit quality requirements.

GELT represents an expansion of Tether's portfolio beyond its flagship USDT, joining a smaller lineup of currency-specific products. The company has previously issued tokens pegged to the Mexican peso and the offshore Chinese yuan, alongside announced plans for a United Arab Emirates dirham-pegged stablecoin. Tether's Mexican peso-pegged MXNT launched in 2022 with initial support on Ethereum, Tron, and Polygon networks. Its offshore Chinese yuan-pegged CNHT was created in 2019 and later expanded to the Tron blockchain, while the planned UAE dirham token was announced in 2024 with backing from liquid reserves based in the UAE.

Beyond regional expansions, Tether has developed market-specific products to navigate diverse regulatory landscapes. In January 2026, the company launched USAT, a US-regulated dollar stablecoin specifically aimed at the American market. Woofun AI notes that the company has also strategically wound down some of its earlier non-USDT stablecoins to optimize its operational focus. The company ceased minting its euro-pegged EURT, with redemptions concluding in November 2025, while its offshore Chinese yuan-pegged CNHT is scheduled to become non-redeemable in February 2027. This selective lifecycle management highlights a shift toward regulated, high-compliance assets in key jurisdictions.

The announcement did not specify who would legally issue GELT, where reserves would be held, or whether holders would have direct redemption rights. Cointelegraph reached out to the National Bank of Georgia for further clarification but did not receive a response by publication. Woofun AI analysis suggests that the successful deployment of GELT will serve as a critical test case for the efficacy of Georgia's new regulatory framework in attracting global stablecoin issuers. The outcome may influence how other emerging markets structure their own digital currency initiatives in the coming years.