The development of this stablecoin will involve a partnership with Phoenix Group PLC, a technology company based in the UAE, and will also be supported by Green Acorn Investments Ltd.
Tether, the largest company in the digital asset industry, announced today plans for the addition of a new stablecoin that is pegged to the United Arab Emirates Dirham (AED). Set to be launched in collaboration with UAE’s multi-billion dollar tech conglomerate, Phoenix Group PLC, and with support from Green Acorn Investments Ltd, the Dirham-pegged token joins Tether’s slate of stablecoin products that include USDt, EURT, CNHT, MXNT, XAUT and aUSDT. In true pioneering spirit, it will lead the way in seeking licensing under the UAE Central Bank’s recently announced Payment Token Services Regulation.
Tether’s latest upcoming stablecoin is a digital representation of the United Arab Emirates Dirham, with each token being fully backed by liquid UAE-based reserves. Adhering to Tether’s transparent and robust reserve standards, it ensures that every Dirham-pegged token is tied to the value of the AED, providing stability and confidence in its value.
Tether’s Dirham-pegged stablecoin will provide users with a seamless and cost-effective means of accessing the benefits of the AED while leveraging the transparency and efficiency of blockchain technology.
This digital asset will streamline international trade and remittances, reduce transaction fees, and provide a hedge against currency fluctuations, thus playing a crucial role in the financial ecosystem of the UAE and beyond.
The company views this stablecoin as a potential tool for businesses and individuals involved in cross-border payments, trading, or digital asset diversification.
The global market for stablecoins is currently valued at approximately $150 billion, with Tether’s USDt comprising more than $115 billion of this market. Projections indicate that the industry could grow to $2.8 trillion by 2028.
