Tether partners with UAE company to launch dirham-backed stablecoin
YEREVAN (CoinChapter.com) — Tether, the world’s largest stablecoin issuer, is planning to issue a stablecoin pegged to the United Arab Emirates dirham (AED). The effort involves collaboration with UAE-based Phoenix Group and Green Acorn Investments. According to a press release, the new stablecoin will represent the dirham backed by liquid, UAE-based reserves.
Tether Dirham stablecoin launch. Source: @Tether_to
As the UAE becomes a global economic hub, Tether’s new stablecoin will provide stability by being directly tied to the value of the AED. Tether CEO Paolo Ardoino said the company is “pleased” to add a dirham-backed stablecoin to its options.
Dirham-pegged stablecoin to streamline trade and remittances
Tether’s entry into the UAE market is aimed at streamlining international trade and remittances. The digital asset aims to reduce transaction fees and hedge against currency fluctuations. The stablecoin offers a cost-effective way to harness the benefits of the AED, making transactions safer and more efficient.
With the establishment of the Virtual Asset Regulatory Authority, the UAE is seeing an accelerated adoption of cryptocurrencies since 2022. Tether’s expansion is in line with this trend, providing a trading tool in the UAE market.
Phoenix Group partners with Tether to launch dirham-backed stablecoin in the UAE
Partnership with Abu Dhabi-based technology conglomerate Phoenix Group plays a key role in the launch. Phoenix Group’s involvement supports the company’s goal of providing financial solutions in the region. Seyed Mohammad Alizadefard, co-founder and group CEO of Phoenix Group, noted that the collaboration “reflects” the company’s dedication to supporting the financial ecosystem.
With cryptocurrency usage on the rise in the UAE, this stablecoin aims to meet the demand for digital financial solutions. Tether’s dirham-backed stablecoin could become part of the country’s economic landscape.
Tether Integrates USDT with Aptos for Low-Cost Trading
Tether recently launched its USDT stablecoin on the Layer-1 Aptos blockchain. The move aims to improve access to global digital currencies while reducing transaction costs. The speed and scalability of Aptos means gas fees are a fraction of a penny.
Through its integration with Aptos, Tether aims to make transaction fees feasible for large-scale operations and microtransactions.