Tether Unveils Dirham-Pegged Stablecoin in Partnership with UAE’s Phoenix Group
Tether is introducing a new stablecoin pegged to the United Arab Emirates Dirham (AED), expanding its lineup of digital assets. This Dirham-pegged token will be fully backed by UAE-based reserves, offering users a secure and transparent way to transact with the AED using blockchain technology.
Because Bitcoin
August 21, 2024
Tether has announced plans to introduce a new stablecoin pegged to the United Arab Emirates Dirham (AED). This initiative, in collaboration with UAE-based tech conglomerate Phoenix Group PLC and supported by Green Acorn Investments Ltd, expands Tether's stablecoin portfolio, which includes USDt, EURT, CNHT, MXNT, XAUT, and aUSDT. The Dirham-pegged token will seek licensing under the UAE Central Bank’s new Payment Token Services Regulation.
The forthcoming stablecoin will be fully backed by UAE-based liquid reserves, adhering to Tether's strict transparency and reserve standards. This ensures that each token maintains a stable value tied to the AED, providing users with confidence in its stability.
Tether’s Dirham-pegged stablecoin is designed to offer a seamless and cost-effective way to leverage the AED, utilizing blockchain technology for enhanced transparency and efficiency. The digital asset aims to streamline international trade, reduce transaction fees, and provide a hedge against currency fluctuations, playing a key role in the UAE's financial ecosystem.
Paolo Ardoino, CEO of Tether, stated, "The United Arab Emirates is emerging as a global economic hub, and our Dirham-pegged stablecoin will be a valuable and versatile tool for businesses and individuals alike, whether for cross-border payments, trading, or diversifying digital assets."
The global stablecoin market, currently valued at $150 billion, is expected to grow to $2.8 trillion by 2028. The UAE has seen rapid growth in cryptocurrency adoption, driven by its forward-thinking regulatory environment in cities like Dubai and Abu Dhabi.
Seyedmohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, added, "We are excited to collaborate with Tether to bring a UAE Dirham-pegged stablecoin to market, reflecting our commitment to innovation and providing financial solutions that meet our customers' needs."
Tether’s Dirham-pegged stablecoin is set to become an essential tool in the evolving digital economy, offering a secure and efficient means of conducting transactions within the UAE and beyond.
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