Tether (USDT) to Launch UAE Dirham-Pegged Stablecoin in Collaboration with Phoenix Group
Luisa Crawford Aug 21, 2024 18:16
Tether announces plans to introduce a stablecoin pegged to the UAE Dirham (AED), in partnership with Phoenix Group and Green Acorn Investments.
Tether, the largest company in the digital asset industry, has announced plans to develop a new stablecoin pegged to the United Arab Emirates Dirham (AED). This initiative is set to be launched in collaboration with UAE's multi-billion dollar tech conglomerate, Phoenix Group PLC, and Green Acorn Investments Ltd, according to Tether.
New Addition to Tether’s Stablecoin Portfolio
The Dirham-pegged token will join Tether’s existing range of stablecoins, which includes USDt, EURT, CNHT, MXNT, XAUT, and aUSDT. The new stablecoin will seek licensing under the UAE Central Bank’s recently announced Payment Token Services Regulation, positioning itself as a pioneer in the region.
Features and Benefits
The new stablecoin will be a digital representation of the UAE Dirham, with each token fully backed by liquid UAE-based reserves. Tether has emphasized that the token will adhere to its robust reserve standards, ensuring stability and confidence in its value. The stablecoin aims to provide users with a seamless and cost-effective means of accessing the benefits of the AED while leveraging blockchain technology for transparency and efficiency. It is expected to streamline international trade and remittances, reduce transaction fees, and offer a hedge against currency fluctuations.
Statements from Key Stakeholders
Paolo Ardoino, CEO of Tether, commented, “We’re pleased to announce this initiative to develop Tether’s Dirham-pegged stablecoin, adding to our range of stablecoin options. The United Arab Emirates is becoming a significant global economic hub, and we believe our users will find our Dirham-pegged token to be a valuable and versatile addition.”
Seyedmohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, also expressed his enthusiasm, stating, “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.”
Market Context
The global market for stablecoins is currently valued at $150 billion, with USDt alone having a market cap of more than $115 billion. Projections see this industry’s potential growth to $2.8 trillion by 2028. Cryptocurrency usage in the United Arab Emirates has experienced exponential growth since 2022, driven by the establishment of the Virtual Asset Regulatory Authority, the world’s first independent crypto regulator. The favorable regulatory environment in cities like Dubai and Abu Dhabi has transformed them into global hubs for innovation in crypto assets and blockchain technology.
For more information about Tether’s forthcoming Dirham-pegged stablecoin and its technical specifications, visit the official Tether website: www.tether.io
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