Tether Unveils UAE Dirham-Pegged Stablecoin

Tether, a leading force in digital assets, is expanding its stablecoin portfolio with a new token pegged to the United Arab Emirates Dirham (AED). This initiative, in partnership with Phoenix Group PLC and supported by Green Acorn Investments Ltd, aims to introduce a stablecoin fully backed by UAE reserves, aligning with the UAE Central Bank’s Payment Token Services Regulation.

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Tether’s Dirham-pegged stablecoin will be a digital representation of the AED, offering a transparent and reliable alternative for users. Each token will be backed by liquid reserves in the UAE, ensuring it mirrors the value of the Dirham and upholds Tether’s commitment to robust reserve standards.

The new stablecoin is designed to simplify transactions, reduce fees, and provide stability against currency fluctuations. It will facilitate international trade and remittances while leveraging blockchain’s efficiency and transparency.
“We’re excited to introduce our Dirham-pegged stablecoin, enhancing our stablecoin lineup. With the UAE emerging as a key global economic player, this token will offer businesses and individuals a secure, efficient way to transact in AED, whether for cross-border payments, trading, or digital asset diversification.”

Paolo Ardoino, CEO of Tether
Market Growth and UAE’s Crypto Boom

The stablecoin market, currently valued at $150 billion with USDt alone at $115 billion, is projected to grow to $2.8 trillion by 2028. The UAE’s cryptocurrency sector has seen rapid growth since the establishment of the Virtual Asset Regulatory Authority, with cities like Dubai and Abu Dhabi becoming global crypto hubs.

Seyedmohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, shared, “We are excited to collaborate with Tether on this groundbreaking project. The UAE’s progressive approach to blockchain and digital assets makes it an ideal location for launching our Dirham-pegged stablecoin, which will transform the digital economy across the region.”

For more details about Tether’s Dirham-pegged stablecoin and its technical aspects, visit Tether’s official website.