Tether (USDT) to Launch UAE Dirham-Pegged Stablecoin in Collaboration with Phoenix Group

Tether announces plans to introduce a stablecoin pegged to the UAE Dirham (AED), in partnership with Phoenix Group and Green Acorn Investments.

Cryptocurrency stablecoin issuer Tether Holdings Ltd. is set to launch a stablecoin pegged to the United Arab Emirates dirham, in collaboration with Phoenix Group and Green Acorn Investments.

Tether, the largest company in the digital asset industry, has announced plans to launch a new stablecoin pegged to the United Arab Emirates Dirham (AED). This initiative will be undertaken in partnership with UAE's multi-billion dollar tech conglomerate, Phoenix Group PLC, and Green Acorn Investments Ltd, according to a statement by Tether on Monday.

Tether to Launch UAE Dirham-Pegged Stablecoin

The Dirham-pegged token will join Tether’s existing lineup of stablecoins, including USDt, EURT, CNHT, MXNT, XAUT, and aUSDT. The new stablecoin will be licensed under the UAE Central Bank’s recently announced Payment Token Services Regulation.

The new stablecoin will be a digital representation of the United Arab Emirates Dirham, with each token being fully backed by liquid UAE-based reserves, according to Tether. The token will reportedly adhere to Tether’s robust reserve standards, ensuring stability and confidence in its value.

The stablecoin is designed to provide users with a seamless and cost-effective way to access the benefits of the AED, while also 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.

Paolo Ardoino, CEO of Tether, said, “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 commented, “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.”

The global market for stablecoins is currently valued at $150 billion, with USDt alone having a market cap of more than $115 billion. This industry is projected to grow to $2.8 trillion by 2028.

Cryptocurrency usage in the United Arab Emirates has seen exponential growth since 2022, largely due to 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 also seen them become 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