Cryptocurrency giant Tether has announced plans to issue a new stablecoin pegged to the United Arab Emirates (UAE) dirham, an effort aimed at meeting growing demand for the UAE currency and providing an alternative to the US dollar.
Tether CEO Paolo Ardoino said the goal is to give users more options to use different currencies other than the U.S. dollar. He said he believes the dirham (the UAE currency) could become more popular as global trade changes.
He also noted that many people are interested in holding dirhams outside the UAE as they believe the UAE and its finances are stable and safe.
Ardoino stressed that the dirham-pegged stablecoin is designed to facilitate secure transactions, streamline international trade and reduce transaction fees compared to traditional methods.
The new stablecoin will be developed in partnership with Abu Dhabi-based Phoenix Group and Green Acorn Investments, marking a milestone in Tether’s entry into the UAE market as it seeks regulatory approval under the UAE Central Bank’s new Payment Token Services Regulation.
Tether Products
Tether offers a range of stablecoins, each designed to maintain a stable value pegged to a traditional currency. The best-known product is USDT, which is pegged to the US Dollar and launched in 2014.
The stablecoin has become a fundamental part of the cryptocurrency market and is widely used as a means of trade and exchange.
In 2022, Tether expanded its offerings by launching EURT, a stablecoin pegged to the euro, and CNHT, pegged to the Chinese yuan. Later that year, it introduced MXNT, a stablecoin pegged to the Mexican peso. In June 2024, it launched Alloy, a digital asset pegged to gold vaulted in Switzerland.
Tether’s introduction of a dirham-pegged stablecoin is part of its plans to expand its services and meet growing demand for stablecoins around the world. The global stablecoin market is growing rapidly, currently worth around $150 billion and potentially reaching $2.8 trillion by 2028.
The UAE’s supportive regulations and currency stability make this dirham-pegged stablecoin a good option for businesses and individuals looking to transact digitally.
A few months ago, Tether announced Allow, a new digital asset based on Tether Gold. At the same time, the company stopped minting USDT on Algorand and EOS. Just two days ago, the stablecoin provider expanded its presence by launching on the Aptos network.