Tether, the creator of the world’s largest stablecoin, has announced its collaboration with Phoenix Group, a leading Abu Dhabi-based cryptocurrency conglomerate, to launch a new stablecoin pegged to the United Arab Emirates dirham (AED). This move expands Tether’s stablecoin portfolio, which currently includes stablecoins linked to the Euro (EURT), US Dollar (USDT), Chinese Yuan (CHNT), and Mexican Peso (MXNT).
Key Highlights of the UAE Dirham-Pegged Stablecoin
The introduction of this new stablecoin aims to enhance the digital representation of the UAE’s currency, the dirham, by ensuring that it is backed entirely by “liquid UAE-based reserves.” The Dirham-pegged stablecoin is designed to provide a secure and efficient means for businesses and individuals to utilize the AED for various purposes, including cross-border payments, international trade, remittances, and diversifying digital assets.
Boosting the Digital Economy
This latest collaboration could significantly boost the digital economy in the UAE by facilitating smoother transactions and offering a practical solution for those seeking to engage with the dirham in the digital realm. The stablecoin’s backing by liquid reserves ensures its stability and reliability, further enhancing its appeal to users.
Tether CEO’s Statement
Paolo Ardoino, CEO of Tether, expressed excitement about this initiative, stating, "We’re pleased to announce this initiative to develop Tether’s Dirham-pegged stablecoin, adding to our range of stablecoin options. It’s set to become an essential tool for businesses and individuals looking for a secure and efficient means of transacting in the UAE Dirham for cross-border payments, trading, or digital asset diversification.”
The Growing Stablecoin Market
Tether’s USDT remains the largest stablecoin globally, with a market value of $117 billion, contributing to the overall stablecoin market's worth of $150 billion. Projections indicate that this market could grow to $2.8 trillion by 2028, further underscoring the importance of stablecoins in the future of finance.
Seyed Mohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, also shared his enthusiasm, adding, “We are thrilled to be working with Tether on bringing a UAE Dirham-pegged stablecoin to the market and are confident of its potential in transforming the digital economy for users across the region and beyond.”
