Tether Expands to UAE with Dirham-Pegged Stablecoin in Collaboration with Phoenix Group
In a significant move to expand its stablecoin ecosystem, Tether, the world’s largest digital asset company, has announced plans to launch a new stablecoin pegged to the United Arab Emirates Dirham (AED). This initiative is a collaboration with the UAE-based tech conglomerate Phoenix Group PLC and investment firm Green Acorn Investments Ltd.
The Dirham-pegged stablecoin will join Tether’s existing lineup of fiat-backed tokens, including the popular USDT, EURT, CNHT, and MXNT. Tether CEO Paolo Ardoino expressed his excitement about the project, stating that the UAE is “becoming a significant global economic hub” and that the Dirham-pegged token will be a “valuable and versatile addition” for Tether’s users.
The new stablecoin aims to provide a cost-effective and transparent means for users to access the benefits of the AED, streamlining international trade and remittances, reducing transaction fees, and offering a hedge against currency fluctuations. Tether plans to seek licensing for the stablecoin under the UAE Central Bank’s recently announced Payment Token Services Regulation, which could further bolster its adoption in the region.
Phoenix Group, a multi-billion dollar tech conglomerate based in Abu Dhabi, will collaborate with Tether on the launch of the Dirham-pegged token. Seyedmohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, expressed his enthusiasm for the partnership, highlighting Abu Dhabi’s progressive stance towards blockchain and digital assets as the perfect launchpad for the new stablecoin.
The global stablecoin market is currently valued at $150 billion, with projections suggesting it could grow to $2.8 trillion by 2028. Tether’s USDT alone has a market capitalization of over $115 billion, underscoring the significance of the company’s move into the AED-pegged stablecoin market.
This initiative by Tether, a pioneer in the stablecoin space, is a testament to the growing importance of digital assets in the global financial ecosystem. The Dirham-pegged stablecoin is poised to play a crucial role in transforming the digital economy for users across the UAE and beyond, offering a secure and efficient alternative for cross-border payments, trading, and asset diversification.
