Tether, the issuer of the popular stablecoin USDT, has announced plans to expand its suite of stablecoins with a new token pegged to the United Arab Emirates Dirham (AED). According to a blog post, the launch will be conducted in partnership with Phoenix Group PLC, a leading UAE-based tech conglomerate, and with the support of Green Acorn Investments Ltd.
Tether to Establish a Stronger Presence in the Middle East Region
This move highlights Tether’s ambition to establish a stronger presence in the Middle East. Tether offers users access to the economic benefits of the AED through a digital asset backed by blockchain technology.
Interestingly, the upcoming Dirham-pegged stablecoin will join Tether’s existing portfolio of fiat-backed digital currencies, which includes USDT, EURT, XAUT, CNHT, and aUSDT.
As detailed in the post, this new stablecoin will provide users with a seamless, cost-effective way to engage with the UAE’s currency without relying on traditional banking systems.
Similarly, blockchain technology integration ensures that transactions will be secure, transparent, and efficient, allowing users to leverage the stability of the Dirham in a digital format. Phoenix Group PLC’s vast resources and technological expertise will play a crucial role in the successful rollout of the AED-pegged stablecoin, which could pave the way for further innovation in the country’s digital economy.
Tether Expands Investments Beyond Stablecoin
In June, Tether expanded its services across other industries, including Artificial Intelligence (AI). Markedly, the USDT issuer invested $18.75 million into blockchain-enabled financial institution XREX Group. The fund injection is crucial to XREX’s next moves, which involve streamlining financial institutions in emerging markets and offering businesses increased efficiency and reduced costs.
In addition to XREX’s plans to utilize the fund, the financial institution intends to work with the Unitas Foundation to introduce the United States dollar-pegged stablecoin over reserved with Tether Gold (XAUt). The potential stablecoin is dubbed XAU1.
Notably, the funding is in sync with “Tether’s long-term vision of building a resilient infrastructure that extends beyond the confines of the crypto market, as demonstrated by its diversified investments in various industry sectors.
Tether Dominating the Stablecoin Market
Tether, originally launched in 2014, operated blockchain networks like Ethereum (ETH) and Tron. It provided users with a digital token pegged to the value of fiat currencies like the US dollar. This pegging mechanism has contributed to widespread adoption across various crypto exchanges and platforms.
In March, Tether made headlines as its circulating supply inched closer to 100 billion tokens. Undoubtedly, the surge in tether’s supply reflects the growing demand for stablecoins in the crypto market. Likewise, the stablecoin issuer achieved exceptional financial results in the first quarter of 2024, reporting a record net profit of $4.52 billion.
As investors seek to mitigate risks associated with price fluctuations, stablecoins offer a haven for storing value and facilitating seamless transactions.
The post Tether To Develop UAE Dirham-Based Stablecoin: Details appeared first on TheCoinrise.com.