🔸 Tether to Launch UAE Dirham-Pegged Stablecoin with Phoenix Group

The top stablecoins are usually linked to the U.S. dollar, while others tied to different currencies are much smaller.

The central bank's new licensing framework for dirham stablecoins might give them a significant boost. Dubai and Abu Dhabi are already known as leading crypto hubs, which adds to the potential.

Tether, the company behind the world’s biggest stablecoin, announced plans to create a token pegged to the UAE's dirham. This project will be in partnership with the Abu Dhabi-listed crypto company, Phoenix Group (PHX).

Stablecoins are digital assets that are typically linked to fiat currencies. They provide users with protection against the volatility often seen in cryptocurrencies like bitcoin (BTC). Among stablecoins, Tether's USDT is the largest, with a market cap exceeding $117 billion. It holds nearly 70% of the stablecoin market, according to CoinGecko data.

Compared to Tether’s euro-pegged stablecoin (EURT), which only has a market cap of $30 million, stablecoins linked to other currencies are tiny in scale.

Tether aims to secure a license for the dirham stablecoin under the UAE central bank's Payment Token Services Regulation, announced in June. This could give the dirham-pegged stablecoin a significant advantage, especially given Dubai and Abu Dhabi’s strong reputations in the crypto world.

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