Tether Plans to Launch a Stablecoin Pegged to the United Arab Emirates Dirham (AED)

Tether, the largest stablecoin issuer globally, plans to launch a stablecoin pegged to the United Arab Emirates dirham (AED).

CoinChapter.com reports that Tether, the world's leading stablecoin issuer, is set to launch a stablecoin pegged to the United Arab Emirates dirham (AED). The initiative will see Tether collaborate with Phoenix Group and Green Acorn Investments, both based in the UAE.

According to a press release, the new stablecoin will be pegged to the dirham and backed by a reserve of highly liquid assets in the UAE.

The UAE is rapidly emerging as a global economic center, and the new stablecoin from Tether will be directly pegged to the value of the AED, offering a stable digital asset. Paolo Ardoino, the CEO of Tether, said that the company is “delighted” to add the dirham-backed stablecoin to its lineup.

Stablecoin Pegged to Dirham to Facilitate Trade, Remittances

Tether’s entry into the UAE market is geared toward facilitating international trade and remittances. The digital asset will be designed to reduce transaction fees and hedge against currency fluctuations.

This stablecoin will provide a cost-efficient way to access the benefits of the AED, making transactions more secure and efficient.

Since 2022, the UAE has been accelerating the adoption of cryptocurrency, largely driven by the establishment of the Virtual Asset Regulatory Authority. Tether’s expansion aligns with this trend, offering a tool for transacting in the UAE market.

Phoenix Group Partners Tether to Launch Dirham-Backed Stablecoin in UAE

The partnership with Phoenix Group, a tech conglomerate headquartered in Abu Dhabi, is crucial for this launch. Phoenix Group’s involvement supports its goal of providing financial solutions in the region. Seyed Mohammad Alizadehfard, co-founder and Group CEO of Phoenix Group, said that the collaboration “underscores” the firm’s dedication to advancing the financial ecosystem.

Cryptocurrency use is on the rise in the UAE, and this stablecoin aims to meet the demand for digital financial solutions. Tether’s dirham-backed stablecoin could integrate into the country’s economic fabric.

Tether Integrates USDT with Aptos for Low-Cost Transactions

In other news, Tether recently launched its USDT stablecoin on the layer-1 Aptos blockchain. This move aims to enhance global access to digital currencies while slashing transaction costs.

Aptos’ speed and scalability allow gas fees to be minimal, costing only a fraction of a penny. By integrating with Aptos, Tether aims to make transaction fees feasible for large-scale operations and microtransactions.

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