The developers of Tether, the world’s largest stablecoin, have announced that they are teaming up with Abu Dhabi-listed crypto conglomerate Phoenix Group to launch a stablecoin pegged to the United Arab Emirates dirham (AED).
Latest update: 🇦🇪 Tether to release stablecoin pegged to UAE currency.
— Watcher.Guru (@WatcherGuru) August 21, 2024
The yet-to-be-named stablecoin will be added to Tether’s current list of stablecoins, which already includes coins based on the euro (EURT), US dollar (USDT), Chinese yuan (CHNT) and Mexican peso (MXNT).
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Key Features of the New Stablecoin
Enhanced digital representation of AED
Notably, this latest collaboration could strengthen the digital representation of the AED, as the stablecoin will be fully backed by “liquid UAE-based reserves.”
Tether said its dirham-pegged stablecoin will provide a safe and practical means of using the AED in the digital realm, while also addressing the needs of those looking to make international trade and remittances more efficient.
CEO Statement
Tether CEO Paolo Ardoino further commented:
“We are pleased to announce this initiative to develop a Tether dirham-pegged stablecoin and increase our stablecoin options,” said David L. Schneider, CEO of Tether. “The Tether dirham-pegged stablecoin will be an essential tool for businesses and individuals looking for a safe and efficient means to transact in the UAE dirham, whether for cross-border payments, trading, or simply diversifying their digital assets.”
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Tether’s Market Reach
Tether’s USDT is currently the largest stablecoin, with a market capitalization of $117 billion, and the company says the global stablecoin market is worth $150 billion, with USDT dominating it.
By 2028, the industry is expected to grow to $2.8 trillion. Seyyed Mohammad Alizadefard, Co-founder and Group CEO of Phoenix Group, further added:
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“We are excited to work with Tether to bring our UAE dirham-pegged stablecoin to market and are confident in its potential to transform the digital economy for users across the region and beyond.”