Tether Eyes Dirham-Pegged Stablecoin as CEO Rules Out Blockchain Launch

Tether, the issuer of the world's largest stablecoin, USDT, has maintained its position as an industry powerhouse over the past years.

Stablecoin issuer Tether has announced that it will not be launching its own blockchain. In an interview with Bloomberg, Tether’s CTO Paolo Ardoino stated that the company has no plans to launch a blockchain due to the market being saturated and the technology being commoditized.

Despite having the technological capabilities to do so, Ardoino said that existing blockchains already provide good solutions and that it may be more efficient to use those rather than creating a new one.

The news comes as Tether has been making changes to the blockchains that support USDT. Recently, the company announced that it would be dropping support for some platforms while expanding to others.

However, while a stablecoin launch may not be in the works, Tether is still looking to expand in other areas.

One of Tether’s upcoming projects includes the launch of a new stablecoin pegged to the United Arab Emirates Dirham (AED). The launch will be in collaboration with Phoenix Group PLC, a leading UAE tech conglomerate, and Green Acorn Investments Ltd.

The stablecoin will be pegged to the AED and will combine the stability of the Dirham with the technological benefits of blockchain. The launch of the Dirham-pegged stablecoin will also mark the first application under the Payment Token Services Regulation, recently introduced by the UAE Central Bank.

The launch of the Dirham-pegged stablecoin is expected to provide users with protection against currency fluctuations, facilitate international trades, and streamline remittances.

According to projections, the Dirham-pegged stablecoin is also expected to contribute significantly to the growth of the stablecoin market, which is currently valued at $180 billion and is anticipated to reach $2.8 trillion by 2028.