Tether's 2024 Swiss entity establishment falls through... Lugano activities continue

Tether abandoned plans to establish a Swiss legal entity in 2024, citing tax burden tied to the OECD's global minimum tax, which Switzerland began applying at a 15% floor on domestic profits that year, according to the Financial Times. Lugano Mayor Michele Foletti said Tether management balked at the added tax cost, though the stablecoin issuer continues selling services through a local entity and maintains its partnership with the city of Lugano. The decision matters because Tether, the largest stablecoin issuer by market capitalization, had been expected to deepen its Swiss footprint after making Lugano a hub for its crypto adoption push. Watch whether Tether revisits a Swiss domicile as global minimum tax rules bed in, and whether its Lugano collaboration expands despite the absence of a local corporate entity.