Tether, the largest stablecoin provider, has revealed its plans to launch a new stablecoin linked to the United Arab Emirates dirham (AED). This move marks Tether’s entry into the UAE’s financial market, offering a digital version of the dirham.
The new stablecoin will be launched in collaboration with Phoenix Group, a tech conglomerate based in Abu Dhabi, and Green Acorn Investments. These partnerships aim to create a stablecoin fully backed by liquid UAE-based reserves, ensuring the token’s value remains stable.
Benefits of the Tether’s Dirham-Pegged Stablecoin
Tether emphasized that this dirham-pegged stablecoin will adhere to the company’s strong reserve standards. Every token will be tied to the AED, providing users with confidence in its value. The stablecoin is expected to offer a cost-effective way for users to access the benefits of the AED, especially in international trade and remittances.
The introduction of this stablecoin is seen as a step towards streamlining international trade and reducing transaction fees. It will also provide a hedge against currency fluctuations, making it an attractive option for businesses and individuals alike.
UAE’s Growing Role in the Crypto Space
Paolo Ardoino, CEO of Tether, expressed the company’s excitement about adding the dirham-pegged stablecoin to their offerings. He highlighted the UAE’s growing importance as a global economic hub and the value this new token will bring to users.
Seyed Mohammad Alizadehfard, co-founder and Group CEO of Phoenix Group, echoed these sentiments, stating that the partnership demonstrates their commitment to providing financial solutions to their customers.
Cryptocurrency use in the UAE has surged since 2022, driven by the establishment of the Virtual Asset Regulatory Authority. This new stablecoin is expected to further support this growth and provide a useful tool for transactions in the region.
