Tether, the largest stablecoin provider in the digital asset industry, has announced plans to introduce a new stablecoin pegged to the United Arab Emirates dirham (AED). The move is part of a collaboration with UAE-based Phoenix Group and Green Acorn Investments, aiming to create a digital representation of the dirham currency that is fully backed by liquid UAE-based reserves.
According to a press release shared with Cointelegraph, the dirham-pegged stablecoin will adhere to Tether’s transparent and robust reserve standards, ensuring that each token is tied to the value of the AED, thereby providing stability and confidence to its users.
Tether’s entry into the UAE financial market with this new stablecoin is expected to offer a cost-effective method for users to access the benefits of the AED. The stablecoin is designed to streamline international trade and remittances, reduce transaction fees, and provide a hedge against currency fluctuations.
Paolo Ardoino, CEO of Tether, expressed the company’s satisfaction with the addition of the dirham-pegged stablecoin to its range of offerings, highlighting the UAE’s growing significance as a global economic hub.
The launch is part of a broader partnership with Phoenix Group, a multibillion-dollar tech conglomerate based in Abu Dhabi. The collaboration is intended to provide businesses and individuals with an essential tool for transacting in the UAE’s increasingly crypto-friendly environment, bolstered by the establishment of the Virtual Asset Regulatory Authority.
Seyed Mohammad Alizadehfard, co-founder and Group CEO of Phoenix Group, stated that the partnership underscores the firm’s dedication to offering innovative financial solutions to its customers.
This announcement follows Tether’s recent launch of its USDT token on the Aptos blockchain on August 19, aimed at improving global digital currency access and reducing transaction costs. By leveraging Aptos’ speed and scalability, Tether intends to offer extremely low transaction fees, making it economically viable for a wide range of use cases.