- Tether plans to introduce an AED-pegged stablecoin in collaboration with UAE tech giants.
- The Dirham-backed stablecoin aligns with UAE’s growing influence in the global crypto market.
- Launched under UAE Central Bank regulations, the stablecoin ensures stability and credibility.
Tether is planning to introduce a new stablecoin pegged to the United Arab Emirates Dirham (AED). This is a new milestone in the development of Tether in the field of stablecoins and corresponds to the increasing role of the UAE in setting up a crypto market.
According to a recent report, Tether is working with Phoenix Group PLC, a multi-billion-dollar technology conglomerate located in the UAE, and Green Acorn Investments Ltd to launch the AED-backed stablecoin. This new digital asset will be launched under the legal framework of the UAE Central Bank’s Payment Token Services Regulation which is considered as one of the firsts for the region.
The stablecoin will be pegged to Dirham, and issued based on the value of totally liquid assets within the UAE. Tether guarantees each of these tokens has a one-to-one relationship with the AED, with reference to Tether’s reserve requirements. Such support gives comfort to the users regarding the stability as well as the worth of the digital asset adding to the credibility of Tether.
Tether Transforms UAE Finance
This stablecoin is believed to transform the financial system and bring the value and functionality of the AED to the blockchain in an efficient and inexpensive manner. It is expected to bring efficiency in the international trade, lower the transaction cost and hedge the foreign exchange risks which makes it valuable tool for business as well as individuals in the UAE and other countries. Paolo Ardoino, CEO of Tether, stated:
“We’re pleased to expand our stablecoin offerings with the addition of the Dirham-pegged token. The UAE is becoming a global economic hub, and this new stablecoin will be a valuable tool for transacting in AED.”
The Phoenix Group Co-Founder and CEO Seyedmohammad Alizadehfard also shared the same views opining on the comprehensiveness of the UAE to embrace blockchain & digital assets. He pointed out that the progressive nature of Abu Dhabi’s regulations makes it the perfect location for this groundbreaking financial product.
The global stablecoin market is currently estimated at $150 billion, and Tether’s USDt alone has a market capitalization of over $115 billion. This industry is predicted to growth to $2. 8 trillion by 2028. Regulatory progress and leading cities like Dubai as well as Abu Dhabi have made the UAE a crucial player in the world of cryptocurrencies and blockchain industry, and this new Dirham-pegged stablecoin only strengthens that position.
