Tether Set to Launch United Arab Emirates Dirham-Pegged Stablecoin

World’s largest stablecoin issuer, Tether is set to launch a new stablecoin that’ll be pegged to the United Arab Emirates Dirham (AED).

World’s largest stablecoin issuer Tether is set to launch a new stablecoin that’ll be pegged to the United Arab Emirates Dirham (AED). The firm disclosed this on Wednesday in a post on its official website.

According to the announcement, Tether will work with a multinational company in the UAE called the Phoenix Group PLC. The initiative will also have the support of Green Acorn Investments Ltd.

It is important to note that the proposed Dirham-pegged stablecoin will join Tether’s lineup of virtual assets, which includes USDT, EURT, CNHT, MXNT, XAUT, and aUSDT. Also, Tether will apply for a license as part of its compliance with local and international regulations before launching the stablecoin.

The firm will reportedly pursue regulatory approval through the Payment Token Services Regulation of the UAE Central Bank. In the statement, Tether also revealed that the stablecoin will be fully backed by liquid UAE-based reserves.

Furthermore, the stablecoin issuer promises to ensure that the token maintains the value of the AED and provides more stability that’ll gain users’ trust. Tether went on to explain how the new stablecoin will offer users a seamless and cheap way of exploring the benefits of the AED by utilizing the efficiency of blockchain technology.

In a similar vein, the firm also discussed how the UAE Dirham-pegged stablecoin will help streamline international trade and remittances. Also, Tether disclosed that it will be effective in reducing transaction fees and offer holders a hedge against currency fluctuations.

Paolo Ardoino’s Opinion On The New Token

The CEO of Tether, Paolo Ardoino provided more insight into the relevance of the new stablecoin. Ardoino illustrated how the United Arab Emirates is growing to be a relevant global economic hub.

Further, the executive expressed his confidence in how the Dirham-pegged stablecoin will be a valuable and versatile addition. Lastly, the CEO said the token will become an essential tool for businesses and individuals in the UAE.

Side Note On Tether

According to Coinmarketcap, the stablecoin market is valued at over $150 billion, with Tether’s USDT contributing over $115 billion to the total. With that, the firm has emerged as a force to be reckoned with and it also places it at the heart of a fast-growing ecosystem.

From market projections, the stablecoin industry is set to grow and reach $2.8 trillion by 2028. However, Tether is expected to be one of the major drivers of this growth due to its dominance in the stablecoin space.

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