Tether Partners with UAE Firms to Launch Dirham-Backed Stablecoin
YEREVAN (CoinChapter.com) — Tether, the largest stablecoin issuer globally, plans to launch a stablecoin pegged to the United Arab Emirates dirham (AED). This initiative involves collaboration with UAE-based Phoenix Group and Green Acorn Investments. According to a press release the new stablecoin will represent the dirham, backed by liquid UAE-based reserves.
Tether Dirham Stablecoin Launch. Source: @Tether_to
The UAE is becoming a global economic hub, and Tether’s new stablecoin will tie directly to the AED’s value, offering stability. Paolo Ardoino, Tether’s CEO, said the firm is “pleased” to add the dirham-backed stablecoin to its range of options.
Dirham-Pegged Stablecoin to Streamline Trade and Remittances
Tether’s entry into the UAE market aims to streamline international trade and remittances. The digital asset seeks to reduce transaction fees and hedge against currency fluctuations. This stablecoin will provide a cost-effective method for accessing the AED’s benefits, making transactions more secure and efficient.
The UAE’s adoption of cryptocurrency has accelerated since 2022, driven by the establishment of the Virtual Asset Regulatory Authority. Tether’s expansion aligns with this trend, offering a tool for transacting in the UAE market.
Phoenix Group Partners with Tether to Launch Dirham-Backed Stablecoin in UAE
The partnership with Phoenix Group, a tech conglomerate based in Abu Dhabi, plays a key role in this launch. Phoenix Group’s involvement supports its goal of providing financial solutions in the region. Seyed Mohammad Alizadehfard, co-founder and Group CEO of Phoenix Group, noted that the collaboration “reflects” the firm’s dedication to supporting the financial ecosystem.
Cryptocurrency use is growing in the UAE, and this stablecoin aims to meet the demand for digital financial solutions. Tether’s dirham-backed stablecoin could become part of the country’s economic landscape.
Tether Integrates USDT with Aptos for Low-Cost Transactions
Tether recently launched its USDT stablecoin on the layer-1 Aptos blockchain. This move aims to improve global digital currency access while reducing transaction costs. Aptos’ speed and scalability enable low gas fees, costing only a fraction of a penny.
Tether USDT on Aptos Blockchain. Source: TheDefiant.io
By integrating with Aptos, Tether seeks to make transaction fees viable for large-scale operations and microtransactions.
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