Louisa Crawford
21 Aug 2024 18:16
Tether announced plans to launch 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). According to Tether, the initiative will be launched in partnership with Phoenix Group PLC, a multi-billion dollar technology conglomerate in the UAE, and Green Acorn Investments Ltd.
New addition to Tether’s stablecoin portfolio
The dirham-pegged token will join Tether’s existing stablecoin range, 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 Regulations, making it 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 emphasized that the token will adhere to robust reserve standards, ensuring stability and certainty of 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 simplify international trade and remittances, reduce transaction fees, and provide a hedge against exchange rate fluctuations.
Statement of Key Stakeholders
Paolo Ardoino, Tether CEO, said: “We are excited to announce this initiative to develop Tether’s dirham-pegged stablecoin, adding to our range of stablecoin options. The UAE is becoming a significant global economic hub, and we believe our users will find our dirham-pegged token a valuable and versatile addition.”
Seyed Mohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, also expressed his enthusiasm, saying, “We are excited to partner with Tether to bring to market a stablecoin pegged to the UAE Dirham and are confident that this coin has the potential to transform the digital economy for users in the region and beyond.”
Market conditions
The global market for stablecoins is currently worth $150 billion, with USDt alone having a market cap of over $115 billion. The potential growth of the industry is expected to reach $2.8 trillion by 2028. Cryptocurrency usage in the UAE has grown exponentially since 2022, following the establishment of the Virtual Asset Regulatory Authority, the world’s first independent cryptocurrency regulator. The favorable regulatory environment in cities such as Dubai and Abu Dhabi has turned them into global hubs for crypto assets and blockchain technology innovation.
For more information about Tether’s upcoming dirham-based stablecoin and its technical specifications, please visit the official Tether website at www.tether.io.
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