August 21, 2024 โ Tether, the world’s leading digital asset company, has revealed plans to roll out a new stablecoin pegged to the United Arab Emirates Dirham (AED). This new addition to Tether’s suite of stablecoins is being developed in partnership with Phoenix Group PLC, a multi-billion dollar UAE-based tech conglomerate, and with backing from Green Acorn Investments Ltd. The Dirham-backed stablecoin will join Tether’s existing stablecoin products, including USDt, EURT, CNHT, MXNT, XAUT, and aUSDT.
This new stablecoin will be fully supported by liquid reserves based in the UAE, ensuring each token maintains a 1:1 peg to the AED. As part of Tetherโs commitment to transparency and security, the reserves backing the token will be independently audited to guarantee stability and confidence. In line with Tetherโs pioneering reputation, the stablecoin will be developed to comply with the UAE Central Bankโs newly announced Payment Token Services Regulation.
The UAE Dirham stablecoin is expected to deliver significant benefits to users by providing a cost-effective way to access AED through blockchain technology. It aims to revolutionize international trade, streamline remittances, reduce transaction fees, and offer a stable hedge against currency volatility. This token will play a critical role in the UAEโs evolving financial ecosystem, offering businesses and individuals a modern, secure option for cross-border payments, trading, and digital asset diversification.
โWe are excited to introduce Tetherโs Dirham-pegged stablecoin, which expands our range of stablecoin offerings,โ said Paolo Ardoino, CEO of Tether. โAs the UAE grows into a global economic hub, we believe our Dirham-pegged token will become a key asset for those looking to conduct seamless and secure transactions in the UAE Dirham.โ
The stablecoin market is currently valued at $150 billion globally, with USDt alone representing over $115 billion in market cap. Experts forecast this market to grow to $2.8 trillion by 2028. The UAEโs progressive regulatory environment, particularly in cities like Dubai and Abu Dhabi, has attracted global attention, fueling the growth of blockchain and cryptocurrency innovation.
Seyedmohammad Alizadehfard, Co-Founder and CEO of Phoenix Group, emphasized the importance of this partnership: โWe are proud to collaborate with Tether on this groundbreaking project. With the UAE’s forward-thinking approach to blockchain and digital assets, weโre confident this Dirham-pegged stablecoin will transform the digital economy, benefiting users across the region and beyond.โ
For further details on the Dirham-pegged stablecoin and technical specifications, visit Tetherโs official website: www.tether.io.
