Stablecoin issuer Tether has revealed plans to develop a new stablecoin pegged to the United Arab Emirates dirham (AED).
Tether CEO Paolo Ardoino called the UAE “an important global economic hub” and said in a statement shared with Decrypt that the new stablecoin will be “secure and secure in the UAE dirham. It is aimed at businesses and individuals looking for efficient means of trading. It includes cross-border payments, transactions, and asset diversification.
In a press release, the company outlined plans to collaborate with UAE-based technology conglomerate Phoenix Group PLC and Green Acorn Investments Ltd. to launch an as-yet-unnamed stablecoin. did.
The proposed dirham-pegged token would join Tether’s existing stablecoin lineup, which includes those pegged to the US dollar, euro, Chinese yuan, and Mexican peso.
Ardoino said the new stablecoin aims to provide users with a means to access the benefits of AED while leveraging blockchain technology, and Tether said the digital asset will facilitate international trade and remittances. fluctuations, which it claimed had the potential to streamline, reduce trading fees and provide currency hedging.
UAE and cryptocurrencies
The initiative comes as the UAE continues to position itself as a hub for cryptocurrency and blockchain innovation.
Cryptocurrency investment has been rapidly increasing in the country since 2022, partly due to the establishment of the Crypto Asset Regulatory Authority in Dubai. In 2023, Coinbase CEO Brian Armstrong praised the country’s “forward-thinking” approach to digital assets, and crypto exchange Binance identified the region as a “center point” for the crypto industry. .
Seyed Mohammad Alizadefard, co-founder and group CEO of Phoenix Group, expressed optimism about the partnership, highlighting Abu Dhabi’s progressive attitude towards blockchain and digital assets.
The company said each token will be fully backed by UAE-based liquidity reserves, in line with existing standards that have previously faced scrutiny. Tether has not yet been audited by one of the big four accounting firms: Deloitte, PwC, EY and KPMG, but Ardoino said an audit is a “top priority” for the company.
The global stablecoin market is currently valued at $150 billion, with some predictions that it could grow to $2.8 trillion by 2028. Tether’s USDT stablecoin, the largest by market share, currently has a reported market capitalization of over $117 billion, per CoinGecko data.
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