Tether, the stablecoin issuer behind USDT, has announced plans to introduce a stablecoin pegged to the United Arab Emirates Dirham (AED). This stablecoin, developed in collaboration with UAE-based tech conglomerate Phoenix Group PLC and Green Acorn Investments Ltd, marks the latest addition to Tether's growing portfolio of stablecoins.
Tether’s stablecoin lineup already includes several currency-pegged tokens such as USDT (pegged to the U.S. dollar), EURT (pegged to the Euro), CNHT (pegged to the Chinese Yuan), MXNT (pegged to the Mexican Peso), XAUT (pegged to gold), and aUSDT (pegged to the Australian Dollar).
According to Tether, each Dirham-pegged token will be fully backed by liquid reserves based in the UAE, ensuring that the stablecoin maintains a consistent value tied to the AED.
The new Dirham-pegged stablecoin is expected to offer several advantages for users, particularly in the areas of international trade, remittances, and digital transactions. By leveraging blockchain technology, the stablecoin will facilitate seamless, cost-effective transactions, reducing fees and offering a hedge against currency fluctuations.
Paolo Ardoino, CEO of Tether, emphasized the strategic importance of this initiative, noting that the UAE is rapidly emerging as a significant global economic hub and that the Dirham-pegged token would be a valuable addition to Tether’s offerings, providing users with a secure and efficient means of transacting in AED. The global market for stablecoins is currently valued at approximately $150 billion, with Tether's USDT alone commanding a market cap of over $115 billion. Industry projections suggest that the market could grow to $2.8 trillion by 2028, reflecting the expanding role of stablecoins in the global financial landscape.
-Dr. Kamalnayan Dave
Founder & CEO
Bitlab Digital Private Limited