Phoenix Group PLC and Tether Collaborate to Launch UAE Dirham-Pegged Stablecoin

The UAE’s Phoenix Group PLC, listed on the Abu Dhabi Securities Exchange (ADX), recently announced its collaboration with Tether

Abu Dhabi Securities Exchange (ADX)-listed Phoenix Group has announced a collaboration with Tether, the largest company in the digital asset industry, to launch a stablecoin pegged to the UAE Dirham.

The launch of the stablecoin, which will be available globally, is supported by Green Acorn Investments. It will be the first stablecoin to be pegged to the Dirham and will be available on multiple exchanges around the world.

The value of the global market for stablecoins currently stands at $150 billion and is set to grow exponentially to $2.8 trillion by 2028.

Mirroring the value of the Dirham, the stablecoin will bridge the gap between traditional finance and the digital economy, offering robust solutions for investors, businesses, and everyday consumers seeking stability in the world of cryptocurrency and digital assets.

The stablecoin will be built on a state-of-the-art blockchain platform, ensuring security, transparency, and efficiency.

The stablecoin will provide a haven for assets in an often unpredictable market, backed by the financial strength and tech expertise of Phoenix and Tether, in line with strict regulatory compliance measures.

“This collaboration with Tether not only underscores our commitment to innovation and excellence but also reflects our dedication to providing financial solutions that meet the needs of our customers. Abu Dhabi’s progressive stance towards blockchain, digital assets, and innovation makes it the perfect launchpad,” stated Seyed Mohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group.

“The partnership between Tether and Phoenix Group to create a stablecoin pegged to the UAE Dirham is a testament to the country’s commitment to digital currencies and financial innovation. This collaboration will provide a valuable and versatile tool for businesses and individuals in the digital economy,” said Farah Zafar, Managing Director and Group Chief Legal Officer.

The UAE government’s robust and forward-thinking regulatory framework, in addition to the rapidly increasing rate of cryptocurrency adoption, complements Phoenix Group’s commitment to fostering innovation within the crypto sphere.

The UAE’s visionary regulatory regime not only cements the UAE’s status as a global leader in the growing digital economy but also exemplifies the critical role that progressive regulatory approaches play in shaping the future of finance.

“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,” said Paolo Ardoino, CEO of Tether.

Tether expects the Dirham-pegged stablecoin to become an essential tool for businesses and individuals looking for a secure and efficient means of transacting in the local currency whether for cross-border payments, trading, or simply diversifying one’s digital assets.