Digital asset giant Tether has announced plans to add a new stablecoin pegged to the United Arab Emirates Dirham (AED). To be launched in partnership with UAE multi-billion dollar technology conglomerate Phoenix Group PLC and backed by Green Acorn Investments, the dirham-backed token will join Tether’s stablecoin offerings which include USDt, EURT, CNHT, MXNT, XAUT and aUSDT. In true pioneering spirit, the company will be leading the way in obtaining a license under the UAE Central Bank’s recently announced Payment Token Services Regulation.
Tether’s newest stablecoin is a digital representation of the United Arab Emirates Dirham, with each token fully backed by liquid, UAE-based reserves. Adhering to Tether’s transparent and robust reserve standards ensures that all dirham-pegged tokens are tied to the value of the AED, providing stability and reliability to their value.
Tether’s dirham-pegged stablecoin provides users with a seamless, cost-effective way to access the benefits of the AED, while leveraging the transparency and efficiency of blockchain technology. The digital asset will streamline international trade and remittances, reduce transaction fees, and provide a hedge against currency fluctuations, playing a vital role in the financial ecosystem in the UAE and beyond.
We are pleased to announce this initiative to develop Tether’s dirham-pegged stablecoin and increase our stablecoin options. The UAE is becoming an important global economic center, and we believe our dirham-pegged token will be a valuable and versatile addition for our users. Tether’s dirham-pegged stablecoin will be an essential tool for businesses and individuals looking for a secure and efficient means of transacting in the UAE dirham, whether for cross-border payments, trading, or simply diversifying their digital assets.
Paolo Ardoino, CEO of Tether
The global stablecoin market is currently valued at $150 billion, with USDt alone having a market capitalization of over $115 billion, and it is predicted that the industry could grow to $2.8 trillion by 2028. Cryptocurrency usage in the UAE is set to increase exponentially since 2022 with the establishment of the Virtual Asset Regulatory Authority, the world’s first independent cryptocurrency regulatory body. The favorable regulatory environment thus established in cities such as Dubai and Abu Dhabi has transformed these cities into global hubs for innovation in crypto assets and blockchain technology.
“We are excited to work with Tether to bring a UAE Dirham-pegged stablecoin to market and are confident in its potential to transform the digital economy for users in the region and beyond. This collaboration with Tether not only highlights our commitment to innovation and excellence, but also reflects our dedication to providing financial solutions that meet our customers’ needs. Abu Dhabi’s progressive attitude towards blockchain, digital assets and innovation makes it the perfect launch pad.”
Seyyed Mohammad Alizadefard, Co-Founder and Group CEO of Phoenix Group
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