Tether collaborates to launch dirham-backed stablecoin in UAE
Tether (CRYPTO:USDT), the leading stablecoin provider in the digital asset industry, has announced plans to introduce a new stablecoin pegged to the United Arab Emirates dirham (AED).
This new venture will be launched in partnership with UAE-based Phoenix Group and Green Acorn Investments, aiming to create a digital representation of the dirham that is fully backed by liquid UAE-based reserves.
The dirham-pegged stablecoin is expected to provide a stable and reliable digital asset, adhering to Tether’s robust reserve standards.
This stablecoin will be tied to the value of the AED, offering users a secure option for transactions.
The primary goal is to enhance international trade and remittances by providing a cost-effective alternative that reduces transaction fees and offers a hedge against currency fluctuations.
Tether’s expansion into the UAE’s financial market with this dirham-backed stablecoin aligns with the region’s growing significance as a global economic hub.
Paolo Ardoino, CEO of Tether, emphasised the value and versatility of this new addition, highlighting the benefits it will bring to users in the UAE and beyond.
The collaboration with Phoenix Group, a major tech conglomerate based in Abu Dhabi, underscores the commitment to providing essential financial tools for businesses and individuals.
As cryptocurrency use in the UAE has surged since 2022, driven by the establishment of the Virtual Asset Regulatory Authority, this partnership aims to further integrate digital assets into the region’s financial landscape.
Additionally, Tether has been expanding its presence by launching its USDT token on the Aptos (CRYPTO:APT) blockchain, aiming to improve global digital currency access while reducing transaction costs.
This integration is designed to make transaction fees more economically viable, benefiting large-scale enterprises and microtransactions alike.
Tether’s new dirham-backed stablecoin is poised to play a crucial role in the UAE’s evolving financial ecosystem, offering stability and efficiency in digital transactions.
At the time of writing, Tether was priced at $1.00.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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