Stablecoin issuance company Tether announced on Wednesday (21st) that it plans to cooperate with Abu Dhabi-listed cryptocurrency group Phoenix Group to launch a stablecoin pegged to the United Arab Emirates dirham (AED), which will be based on the United Arab Emirates Central Committee. The "Payment Token Services Law" announced by the bank in June seeks permission for the dirham stablecoin.
Tether’s newest stablecoin to be launched is a digital representation of the UAE dirham, with each token fully backed by UAE-based liquidity reserves. Its press release reads:
“Tether’s dirham-pegged stablecoin will provide users with a seamless and cost-effective way to reap the benefits of AED while leveraging the transparency and efficiency of blockchain technology. This digital asset will simplify international trade and remittances , reduce transaction fees and provide a hedge against currency fluctuations, thereby playing an important role in the financial ecosystem of the United Arab Emirates and other regions.”
Currently, the major stablecoins are pegged to the U.S. dollar. Among them, Tether's Tether (USDT) remains the world's largest stablecoin with a market value of more than $117 billion, accounting for nearly 70% of the stablecoin market.
Very excited for the UAE Dirham-Pegged stablecoin.The opportunity is immense. https://t.co/ogepSRyGtb pic.twitter.com/ujruBJLW2o
— Paolo Ardoino (@paoloardoino) August 21, 2024
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