Tether introduces UAE Dirham-pegged stablecoin
Key receivers
Tether's new stablecoin is fully backed by a UAE-based liquid depository. Tether aims to be a pioneer in the UAE crypto market by being among the early adopters of the new regulatory framework.
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Tether, the largest stablecoin issuer in the digital asset sector, announced on Wednesday that it is developing a new stablecoin alongside the United Arab Emirates dirham (AED) in partnership with UAE tech giant Phoenix Group and Green Acorn Investments.
“We are pleased to announce this initiative to grow Tether's dirham-peg stablecoin, adding to our stablecoin options,” said Tether CEO Paolo Arduino.
Tether's new dirham-peg Stockcoin will be one of the first stablecoins to receive regulatory approval under the UAE Central Bank's new Payment Token Services Regulations.
“We are delighted to be working with Tether to bring a UAE Dirham-pegged stablecoin to market and are confident that we have the potential to transform the digital economy for users in the region and beyond,” said Syed Mohamed Alizadehfard, Co-Founder and Group CEO. Phoenix team.
Tether claims that each dirham-peg token is fully backed by real AED reserves held in the UAE. With the new stablecoin, the company aims to expand its stablecoin offerings, which already include USDT, EURT, CNHT, MXNT, XAUT, and aUSDT.
Tether's dirham-peg stablecoin provides a secure and efficient way to use dirhams in the digital world, the company announced. It also targets users who want to facilitate international trade and money transfers.
Tether expects the new product to help reduce transaction fees and prevent currency fluctuations compared to traditional methods.
“Tether's dirham-pegged stablecoin is designed to be an essential tool for businesses and individuals looking for a safe and efficient transaction method for cross-border payments, trading or simply exchanging one's digital assets in UAE dirhams,” Arduino added.
The dirham-peg stablecoin follows the June launch of Tether, a digital asset backed by gold stored in Switzerland.
In addition to diversifying its product offerings, the company has also expanded into new blockchains. Tether recently announced plans to launch its USDT stablecoin on the Silo network and Aptos blockchain.
Market potential
Currently valued at $150 billion, the global stablecoin market is booming. Tether's USDT alone has a market cap of over $115 billion.
Tether Dirham believes that a stable coin will be beneficial to individuals and businesses in the UAE and beyond. The UAE's favorable regulatory environment creates an opportunity for the new stablecoin to play a role in the region's digital financial future.
“The UAE is becoming a significant global economic hub, and we believe our users will find our dirham-peg token a valuable and versatile addition,” Arduino said.
Crypto usage in the UAE has grown rapidly since 2022. Dubai and Abu Dhabi have emerged as hubs of crypto and blockchain innovation.
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