Georgia’s Stablecoin Ambitions Take Shape
Georgia is moving forward with plans to digitize its national currency through a new stablecoin called GELT, which will be backed by the Georgian lari.
The GELT project is expected to support cross-border commerce and digital payments in Georgia, according to cointelegraph.com. While the structure and timeline for GELT’s rollout remain undisclosed, officials have confirmed that further details regarding regulatory implementation will be announced at a later stage.
GELT’s Reserve Backing Under the Microscope
Under Georgia’s new framework, any stablecoin circulating in the country must be fully backed by reserve assets that meet specific liquidity and credit quality requirements. This means that for every unit of GELT issued, there must be an equivalent amount of lari or qualifying assets held in reserve. Issuers are also required to prepare comprehensive documents related to initial issuance and submit them for external auditor verification—a measure intended to enhance transparency and build trust.
On paper, these rules echo recent U.S. regulatory moves: The GENIUS Act, signed into law on July 18, 2025, requires American stablecoin issuers to maintain 100% reserve backing with liquid assets such as U.S. dollars or short-term Treasuries, paired with monthly disclosures of reserve composition. However, while U.S.-based issuers like Tether are now required to publish monthly breakdowns of their $149.3 billion reserves (as of March 2025), it is still unclear how frequently GELT’s reserves will be reported or audited under Georgian law.
The alignment between Georgian and U.S. frameworks signals an effort to reassure both domestic users and international partners about GELT’s credibility.
See Also
Tether’s Treasury Hoard Riases Eyebrows
Beyond its involvement in Georgia, Tether has become a major player in global finance by amassing over $141 billion in direct and indirect exposure to U.S. Treasuries by the close of 2025. This makes Tether the largest non-sovereign holder—and the seventeenth largest overall holder—of U.S. government debt worldwide. By March 2025, Tether reported $98.5 billion in direct Treasury bills and $15.1 billion in overnight repo agreements among its holdings.
The International Monetary Fund stated in its July 2025 External Sector Report that Tether and Circle now collectively hold more U.S. Treasuries than Saudi Arabia—a striking shift in global financial dynamics. For context, 81.5% of Tether's $149.3 billion reserves were held in cash or near-cash instruments as of March 2025.
These figures highlight how deeply stablecoins have become intertwined with traditional financial markets—and raise questions about systemic risk if redemption pressures were ever to spike suddenly.
Regulatory Hurdles Facing GELT Rollout
While Georgia’s regulatory framework for stablecoins was released in March 2024, many operational details for GELT remain unsettled. The central bank requires written approval before any stablecoin can launch, but has yet to specify criteria for consent or timelines for review. Moreover, only VASPs registered with the National Bank may participate; non-registered companies face mandatory registration before entering the market.
This cautious approach reflects both opportunity and uncertainty for GELT’s future. The government aims to leverage Tether’s experience—backed by billions in U.S. Treasuries—but must also ensure that local oversight keeps pace with rapid changes in global stablecoin regulation.
For now, key questions about GELT’s operational model are unanswered.
The Gist
- •On March 6, 2024, Georgia’s central bank released rules requiring stablecoins like GELT to be fully backed by reserve assets.
- •Tether and the Georgian government plan to launch the lari-backed GELT stablecoin, with rollout details pending announcement.
- •GELT will operate under a Georgian regulatory framework aligned with U.S. stablecoin rules established by the GENIUS Act of July 18, 2025.
What to track going forward
The market will watch for the official announcement of GELT’s structure, rollout, and regulatory implementation details from Tether and the Georgian government; if prior written consent from the National Bank of Georgia is not obtained or issuer documentation and external auditor verification are delayed, GELT’s launch timeline would be immediately impacted and could face regulatory obstacles.