Tether Plans to Launch New Stablecoin Pegged to the United Arab Emirates (UAE) Dirham

Tether, the company behind the $114 billion USDT token, plans to launch a new stablecoin pegged to the United Arab Emirates (UAE) dirham.

Cryptocurrency issuer Tether is set to launch a new stablecoin pegged to the United Arab Emirates (UAE) dirham, in collaboration with Phoenix Group PLC and Green Acorn Investments Ltd.

The yet-to-be-named stablecoin will be fully backed by liquid UAE-based reserves, following Tether’s reserve standards to “ensure stability and trust in its value,” said Tether CTO Paolo Ardoino in a press release.

The new token is expected to streamline international trade and remittances, reduce transaction fees, and provide a hedge against currency fluctuations.

The dirham-pegged stablecoin will be the first of its kind in the UAE, and comes as the central bank steps up efforts to regulate cryptocurrencies pegged to real assets.

In June, the Central Bank of the UAE approved a plan to oversee and license stablecoin arrangements, specifically those backed by the dirham.

The move is part of the UAE's push to become a leader in crypto space under its Financial Infrastructure Transformation Programme.

Currently, stablecoins not backed by the dirham are regulated by Dubai's Virtual Assets Regulatory Authority (VARA). While the details are still being ironed out, the proposed framework creates a clear path for regulated stablecoins in the UAE.

Tether’s expansion into the UAE market comes as the issuer continues to expand its services beyond its flagship USDT, which is the largest stablecoin by market value and a key component of the digital asset ecosystem.

The company has recently launched USDT on the Aptos blockchain to reduce gas fees to “only a fraction of a penny,” it said in a statement earlier this week.

Tether's USDT is available on multiple blockchains, with Tron leading the way at $60.73 billion in net circulation, followed by Ethereum at $52.59 billion.

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