In a significant move for the digital asset industry, Tether, the world’s largest stablecoin issuer, has announced the launch of a new stablecoin pegged to the United Arab Emirates Dirham (AED). This new digital asset, developed in collaboration with UAE’s Phoenix Group PLC and Green Acorn Investments Ltd, aims to enhance cross-border trade and remittance efficiency.
The Dirham-pegged stablecoin is designed to maintain a 1:1 value with the AED, ensuring stability and confidence for users. Each token will be fully backed by liquid UAE-based reserves, adhering to Tether’s robust reserve standards. This initiative aligns with the UAE’s vision to become a global hub for the crypto industry, leveraging the favorable regulatory environment established in cities like Dubai and Abu Dhabi.
Paolo Ardoino, CEO of Tether, expressed his enthusiasm for the project, stating, “The United Arab Emirates is becoming a significant global economic hub, and we believe our Dirham-pegged token will be a valuable and versatile addition for our users. This stablecoin will provide a secure and efficient means of transacting in the UAE Dirham, whether for cross-border payments, trading, or simply diversifying one’s digital assets”.
The introduction of the Dirham-pegged stablecoin is expected to streamline international trade and remittances, reduce transaction fees, and provide a hedge against currency fluctuations. This digital asset will play a crucial role in the financial ecosystem of the UAE and beyond.
As the global market for stablecoins continues to grow, with projections reaching $2.8 trillion by 2028, Tether’s latest addition is poised to make a significant impact. The UAE’s rapid adoption of cryptocurrency, driven by the establishment of the Virtual Asset Regulatory Authority, further underscores the potential of this new stablecoin.
Reference:
https://tether.io/news/tether-to-develop-uae-dirham-pegged-stablecoin/
