Tether to Launch Stablecoin Pegged to UAE’s Dirham

Tether, the stablecoin issuing firm behind USDT, has announced plans to launch a new stablecoin pegged to the United Arab Emirates Dirham (AED). The stablecoin issuer brought this initiative to fruition through a partnership with Phoenix Group PLC, a UAE-based multi-billion dollar tech company, and the venture firm Green Acorn Investments.

According to Tether’s announcement, these partnerships are crucial in ensuring that the stablecoin is fully backed by liquid reserves in UAE Dirhams. Tether aims to offer a stable and transparent digital asset that users can trust, similar to their existing USDT stablecoin, which is pegged to the US dollar.

Tether to Launch AED

The new stablecoin aims to benefit the UAE’s financial sector in several ways. It will make digital transactions within the country more seamless, reducing the costs and time associated with traditional banking. The stablecoin will also be a valuable tool for international trade, helping to streamline cross-border transactions and remittances.

Commenting on the latest initiative, Tether’s CEO Paolo Ardoino said:

“We’re pleased to announce this initiative to develop Tether’s Dirham-pegged stablecoin, adding to our range of stablecoin options. The United Arab Emirates is becoming a significant global economic hub, and we believe our users will find our Dirham-pegged token to be a valuable and versatile addition.”

The UAE has rapidly become a crypto hub, where various crypto projects have entered to offer products to investors. This wide embrace was popularized in March 2022 when the Virtual Asset Regulatory Authority (VARA), the first independent regulator for crypto globally, was established.

Tether’s Expansion Continues

Over the years, Tether has expanded its basket of stablecoins by launching crypto tied to several regions’ local currencies. For example, the stablecoin issuer previously launched a Euro-pegged stablecoin (EURT), a Chinese yuan-pegged stablecoin (CNHT), and a Mexican peso-pegged asset (MXNT).

Additionally, the leading stablecoin issuing company has expanded its flagship stablecoin, USDT, into several blockchain networks in addition to the Ethereum network. Recently, Tether deployed the USDT stablecoin on the Aptos blockchain.