Tether to launch a UAE Dirham-pegged stablecoin, backed by UAE-based liquid reserves.
Tether partners with Phoenix Group to develop a stablecoin tied to the value of the UAE Dirham.
The new Dirham-pegged stablecoin aims to streamline trade, reduce fees, and hedge currency risks.
Tether, the issuer of the world’s largest stablecoin, USDT, is set to launch a new stablecoin pegged to the United Arab Emirates Dirham (AED).
This initiative is a collaboration with UAE tech conglomerate Phoenix Group PLC and Green Acorn Investments Ltd. The new Dirham-pegged token will join Tether’s existing lineup of stablecoins, including USDt, EURt, CNHT, MXNT, XAUt, and aUSDT.
Tether to Develop UAE Dirham-Pegged StablecoinRead more:https://t.co/dkiDAI0y15
— Tether (@Tether_to) August 21, 2024
The upcoming Dirham-pegged stablecoin will have full backing from liquid reserves located in the UAE. Tether’s reserve standards ensure the token’s stability and transparency, giving users confidence in its value. This stablecoin will provide a cost-effective way to tap into the benefits of the AED while leveraging the efficiency of blockchain technology.
Paolo Ardoino, CEO of Tether, highlighted the importance of this new addition. He emphasized the UAE’s emergence as a global economic hub and the value this stablecoin will offer users. The stablecoin will be particularly helpful for cross-border payments, trading, and diversifying digital assets.
Seyed Mohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, expressed his enthusiasm about the collaboration with Tether. He pointed to Abu Dhabi’s progressive approach to blockchain and digital assets, making it the ideal place to launch the Dirham-pegged stablecoin.
Tether plans to apply for licensing for this stablecoin under the UAE Central Bank’s Payment Token Services Regulation. This move aligns with the UAE’s goals to become a global leader in crypto assets and blockchain technology.
The global market for stablecoins is currently valued at $150 billion, with Tether’s USDt alone holding a market cap of over $115 billion. Projections suggest that the stablecoin industry could reach $2.8 trillion by 2028, positioning Tether’s Dirham-pegged stablecoin as a key player in this growing market.
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