Tether Plans Dirham-Pegged Stablecoin Launch For UAE Expansion
Highlights
- Tether plans to launch UAE Dirham-pegged stablecoin, expanding Middle East presence.
- Stablecoin is to be fully backed by liquid UAE-based reserves for stability.
- The USDT issuer is partnering with Phoenix Group to develop the stablecoin.
The leading stablecoin issuer Tether has recently caught the eyes of the crypto market participants with its recent announcement. In a recent X post, the USDT issuer revealed its plan to develop and launch a UAE Dirham-pegged stablecoin. This move marks a significant step by the firm in expanding its foothold in the Middle East, while leveraging the region’s growing adoption of blockchain technology.
Tether Plans To Launch Dirham-Pegged Stablecoin
Tether marks a significant step in its global expansion strategy. The firm plans to introduce a stablecoin pegged to the UAE Dirham (AED), gaining attention from crypto investors. The new stablecoin will be fully backed by liquid UAE-based reserves, which will ensure stability and confidence for the users.
The stablecoin issuer said that it will be partnering with UAE’s tech leader Phoenix Group, and will be backed by Green Acord investments for the development of the coin. The firm showed confidence in setting a new standard in the region with its new offerings.
Meanwhile, CEO Paolo Ardoino expressed his confidence. He said that the UAE’s emergence as a global economic hub presents a huge opportunity for his firm to offer a secure and efficient means of transacting in Dirham. Besides, the firm claimed that the stablecoin will cater to various needs, from cross-border payments to trading and diversifying digital assets.
According to the announcement, the initiative reflects the firm’s commitment to lead the way under the UAE Central Bank’s recently introduced Payment Token Services Regulation. This regulatory framework also comes amid the UAE’s favorable stance towards blockchain and digital assets. In addition, it has also helped transform cities like Dubai and Abu Dhabi into global hubs for innovation in the crypto space.
Notably, the USDT issuer highlights that the total stablecoin market is currently valued at $150 billion. Having said that, Tether’s USDT holds around $115 billion of the total valuation globally. With projections indicating that the industry could grow to $2.8 trillion by 2028, the firm’s entry into the UAE market positions it at the front of the rapidly expanding sector.
Strategic Partnership Of The Stablecoin Issuer
The partnership between Tether and Phoenix Group reflects both firms’ commitment to innovation and excellence. Seyedmohammad Alizadehfard, co-founder and group CEO of Phoenix Group lauds the potential of the Dirham-pegged stablecoin.
Meanwhile, he said that Abu Dhabi’s blockchain and digital assets-friendly approach makes it an ideal launchpad for this innovative product.
In addition, the announcement follows the stablecoin issuer’s recent decision to introduce its dollar-pegged USDT on the Aptos Network. This move reflects the firm’s confidence in Aptos’ advanced ecosystem, known for its speed and scalability solutions.
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