Tether Announces the Launch of UAE Dirham (AED) Stablecoin Targeting the Middle East Market

Leading stablecoin provider Tether announced that it will introduce a stablecoin based on the UAE Dirham (AED). With this move, Tether's activities in the Middle East—where blockchain use is growing quickly—have significantly expanded.

Stablecoin behemoth Tether has announced plans to introduce a stablecoin pegged to the United Arab Emirates Dirham (AED). This marks a significant expansion of Tether's footprint in the Middle East, a region witnessing rapid blockchain adoption.

The new stablecoin will be fully backed by the UAE's liquid reserves, ensuring stability and bolstering user confidence. Tether has disclosed a collaboration with Phoenix Group, a leading technology company in the UAE, with financial backing from Green Acord Investments. This partnership aims to elevate the standards of digital assets in the region.

Highlighting the strategic importance of the move, Paolo Ardoino, Tether's CEO, stated that as the UAE emerges as a global economic hub, Tether has a unique opportunity to provide a secure and efficient mechanism to transact in Dirham. The stablecoin is set to cater to diverse use cases, including international payments, trading, and facilitating the diversification of digital assets.

This initiative aligns with the Payment Token Services Regulation of the UAE Central Bank, which outlines regulatory measures for digital assets. The United Arab Emirates' stance favoring blockchain technology and digital assets has propelled cities like Dubai and Abu Dhabi into global cryptocurrency innovation centers.

Tether's entry into the UAE market comes at a time when the total value of stablecoins stands at $150 billion, with Tether's USDT claiming $115 billion of this龐大 market. As industry projections indicate potential growth to $2.8 trillion by 2028, Tether is positioning itself within this expanding domain.

The partnership between Tether and Phoenix Group is said to showcase their dedication to excellence and innovation. Expressing optimism for the Dirham-pegged stablecoin, Seyedmohammad Alizadehfard, Phoenix Group's co-founder and group CEO, highlighted Abu Dhabi's blockchain-accommodating environment as the ideal launchpad for this product.

Further demonstrating Tether's embrace of advanced blockchain ecosystems, the company recently announced the launch of its dollar-pegged USDT on the Aptos Network. Tether's strategic endeavors in the UAE showcase a strong commitment to setting the standard for innovation in digital assets as the crypto industry continues to advance.

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