Tether, the issuer of the world’s biggest stablecoin (USDT) in the digital currency sector has announced its newest innovation. The firm recently introduced a stablecoin that will be pegged to the United Arab Emirates Dirham (AED). That is, according to a Wednesday Reuters report.
Per the announcement, the new offering is being developed in collaboration with one of UAE’s foremost technology firms Phoenix Group. The collaboration also taps investment partner Green Acorn Investments.
Tether’s New Stablecoin Set to Transform UAE’s Financial Space
Sharing his enthusiasm about the new stablecoin, Paolo Ardoino, CEO of Tether, issued a statement, saying, “We’re pleased to announce this initiative to develop Tether’s Dirham-pegged stablecoin, adding to our range of stablecoin options.”
With the new stablecoin, Tether now boasts an array of stablecoin offerings that include USDT, EURT, CNHT, MXNT, XAUT, and aUSDT.
The Dirham-pegged stablecoin will be one of the first digital currencies to seek approval under the UAE Central Bank’s newly established Payment Token Services Regulation. This regulation is deemed by many to be a major step in the right direction for the UAE as it seeks to integrate digital currencies into its financial ecosystem.
Seyedmohammad Alizadehfard, co-founder and group CEO of Phoenix Group, expressed optimism about the project. His statement reads:
“We are thrilled to be working with Tether on bringing a UAE Dirham-pegged stablecoin to the market and are confident of its potential in transforming the digital economy for users across the region and beyond.”
Each token in this new stablecoin series will be fully backed by AED reserves held within the UAE, ensuring its stability and reliability. Tether is aiming to use the Dirham-pegged stablecoin to streamline international trade and remittances while also reducing transaction costs.
Ultimately, the firm believes that the stablecoin would offer protection against currency fluctuations.
Ardoino also cited one of the stablecoin’s potential benefits. He believes that the Dirham-pegged stablecoin would become an essential tool for businesses and individuals. Especially for those looking for a secure and efficient means of transacting within the UAE.
This development follows the recent launch of Alloy, Tether’s gold-backed digital asset, a further proof of the company’s efforts to expand its digital offerings.
Overall Expectations
Tether’s launch of this stablecoin comes at a time when the global stablecoin market is valued at approximately $150 billion. Of that value, Tether’s USDT alone commands a whopping market cap of over $115 billion.
However, a very important aspect of this new stablecoin is the way it is pegged to the Dirham. That is especially true, considering that the UAE is fast becoming a major player in the global crypto space. That is, all thanks to its supportive regulatory environment and its recent clampdown on illegal mining activities.
Without a doubt, Tether’s Dirham-pegged stablecoin will likely play a prominent role on the region’s digital finance scene.
Notably, in addition to this launch, Tether is also expanding its blockchain presence. The company plans to introduce the USDT stablecoin on the Celo Network and Aptos blockchain.
