Tether to launch stablecoin pegged to UAE dirham
Tether, a leading stablecoin issuer, has announced plans to create a new stablecoin linked to the United Arab Emirates dirham (AED). Tether CEO Paolo Ardoino highlighted the UAE’s role as a “vital global economic hub” and said the stablecoin could be used to secure and secure AED applications, such as cross-border payments and asset diversification. The company said it will cater to companies and individuals seeking efficient transactions.
Ardoino emphasized that the new stablecoin aims to leverage blockchain technology while providing benefits related to AEDs.
He added, “The United Arab Emirates is becoming an important global economic hub and we believe our users will find our dirham-pegged token a valuable and versatile addition.” Dirham-pegged stablecoins are an essential tool for businesses and individuals looking for a secure and efficient means of transacting in UAE dirhams, whether for cross-border payments, trading, or simply diversifying their digital assets. It will be. ”
Although the company has ensured that the new token complies with existing standards and is fully backed by UAE-based liquid reserves, Tether has yet to secure an audit from a Big Four accounting firm. This is a goal that Ardoino says is a “top priority.”
Tether will collaborate with UAE-based Phoenix Group PLC and Green Acorn Investment Limited to launch the stablecoin. The dirham-pegged token will join Tether’s existing stablecoins, including those tied to the US dollar, euro, Chinese yuan, and Mexican peso.
The UAE continues to emerge as a hub for cryptocurrency and blockchain innovation. With the establishment of Dubai’s Crypto Asset Regulatory Authority, crypto investment will become more active from 2022 onwards. Seyed Mohammad Alizadefard, co-founder and CEO of Phoenix Group, expressed optimism about the partnership, citing Abu Dhabi’s forward-thinking attitude towards blockchain and digital assets.
Tether, known for its USDT stablecoin, reported record profits of $5.2 billion in the first half of 2024. The global stablecoin market is valued at $150 billion and is projected to grow to $2.8 trillion by 2028.
