August 21, 2024
Tether, a leading company in the digital asset industry, has announced plans to introduce a new stablecoin pegged to the United Arab Emirates Dirham (AED). This stablecoin will be launched in partnership with Phoenix Group PLC, a major tech conglomerate in the UAE, and supported by Green Acorn Investments Ltd. The Dirham-pegged token will join Tether’s existing stablecoin products like USDt, EURT, CNHT, MXNT, XAUT, and aUSDT, and will seek licensing under the UAE Central Bank’s new Payment Token Services Regulation.
The new stablecoin will be a digital representation of the AED, fully backed by liquid UAE-based reserves, ensuring stability and confidence in its value. It aims to provide users with a cost-effective and transparent way to access the AED, leveraging blockchain technology to streamline international trade and remittances, reduce transaction fees, and hedge against currency fluctuations.
Paolo Ardoino, CEO of Tether, highlighted the UAE’s growing role as a global economic hub and expressed confidence that the Dirham-pegged token will be a valuable addition for users. This stablecoin is expected to become an essential tool for businesses and individuals for cross-border payments, trading, and diversifying digital assets.
The stablecoin market is currently valued at $150 billion, with USDt alone having a market cap of over $115 billion. Projections estimate the industry’s growth to $2.8 trillion by 2028. The UAE has seen significant growth in cryptocurrency usage since 2022, driven by the establishment of the Virtual Asset Regulatory Authority, making cities like Dubai and Abu Dhabi global hubs for crypto innovation.
Seyedmohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, expressed excitement about the collaboration with Tether, emphasizing its potential to transform the digital economy in the region. He noted that Abu Dhabi’s progressive stance on blockchain and digital assets makes it an ideal launchpad for the new stablecoin.
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