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One of the largest companies in the cryptocurrency industry, Tether, announced that it will launch a new stablecoin pegged to the United Arab Emirates (UAE) dirham. With this innovative move, Tether will add a new product to its existing stablecoins such as USDt, EURT, CNHT, MXNT, XAUT, and aUSDT, and will be a pioneer in obtaining a license under the UAE Central Bank’s recently announced Payment Token Services Regulation.
Tether’s New Stablecoin Pegged to UAE Dirham
The new stablecoin pegged to the United Arab Emirates dirham will be fully backed by liquid UAE-based reserves in accordance with Tether’s strong reserve standards. Each token will be tightly linked to the value of the UAE dirham, ensuring the preservation of this value. The stablecoin, which provides users access to the advantages of the UAE dirham, will also offer the transparency and efficiency of Blockchain technology.
Tether’s CEO Paolo Ardoino stated, “The UAE is becoming a global economic hub, and we believe our users will see our token pegged to the UAE dirham as a valuable and versatile addition. Tether’s stablecoin pegged to the UAE dirham will become a secure and effective tool for cross-border payments, trade, or diversifying cryptocurrency portfolios for individuals and businesses.”
Stablecoin aims to facilitate international trade and remittance transactions, reduce transaction fees, and provide protection against currency fluctuations. It is also expected to play a significant role in the financial ecosystem of the UAE and beyond.
Phoenix Group’s Co-Founder and CEO Seyedmohammad Alizadehfard added, “We are delighted to work with Tether and are confident in the stablecoin’s potential to transform the digital economy in the region. This collaboration is a testament to our commitment to innovation and excellence and reflects our determination to provide financial solutions that meet our customers’ needs. Abu Dhabi’s progressive stance on Blockchain, cryptocurrencies, and innovation creates a perfect ground for the launch of the stablecoin.”
Since 2022, the use of cryptocurrency in the UAE has rapidly increased with the establishment of the world’s first independent cryptocurrency regulator, the Virtual Asset Regulatory Authority. This favorable regulatory environment created in cities like Dubai and Abu Dhabi has turned these regions into global hubs for cryptocurrency and Blockchain technology innovations.
Expected to Become a $2.8 Trillion Industry by 2028
The global stablecoin sector currently has a market value of $150 billion, with the market value of USDt alone exceeding $115 billion. The sector is expected to reach a market value of $2.8 trillion by 2028.
