Tether, the leading player in the digital asset space, has announced the launch of a new stablecoin pegged to the United Arab Emirates Dirham (AED). This initiative, set in collaboration with the UAE’s Phoenix Group PLC and Green Acorn Investments Ltd, marks a significant expansion of Tether’s stablecoin portfolio which already includes USDt, EURT, CNHT, MXNT, XAUT, and aUSDT.
Stablecoin Features and Benefits
The new Dirham-pegged token, fully backed by UAE-based liquid reserves, aims to provide a stable and reliable digital representation of the AED. It is designed to facilitate international trade, reduce transaction costs, and offer a safeguard against currency volatility. The stablecoin will be developed under the guidelines of the UAE Central Bank’s Payment Token Services Regulation, ensuring compliance with the highest standards of transparency and security.
CEO’s Perspective on the New Stablecoin
Paolo Ardoino, CEO of Tether, expressed enthusiasm about the launch, noting the UAE’s emergence as a global economic center. He stated, “The UAE Dirham-pegged token will serve as an invaluable tool for anyone needing to conduct transactions in AED, offering benefits for trading, cross-border payments, and asset diversification.”
Growth of Cryptocurrency in the UAE
The introduction of this stablecoin is timely, considering the UAE’s rapidly growing cryptocurrency market, spurred by robust regulatory frameworks and the establishment of the Virtual Asset Regulatory Authority. The region’s progressive approach has made it a fertile ground for blockchain and crypto innovations, attracting global investors and businesses.
Strategic Collaboration and Economic Impact
Seyedmohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, also shared his optimism about the partnership with Tether, highlighting its potential to enhance the digital economy in the UAE and beyond.
This move is set to expand Tether’s already dominant presence in the stablecoin market, which is projected to reach a value of $2.8 trillion by 2028. The addition of a Dirham-pegged stablecoin to its lineup not only diversifies Tether’s offerings but also aligns with the UAE’s strategic vision for a digital economic future.
Tether CEO Says EU’s MiCA Reserve Rule Threatens StablecoinsUSDT Integration with Aptos
This however, is not the first move made by Tether to expand its presence. The company recently announced its plan to launch its U.S. dollar-pegged Tether tokens (USDT) on the Aptos. This move was also to expand Tether’s reach in providing accessibility and functionality of digital currencies globally. With integrating USDT with Aptos, Tether aims to use its exceptional speed and scalability and to offer more efficient and cost-effective transactions.
