New York, NY, Tuesday, August 27, 2024 – Tether has announced plans to launch a new stablecoin pegged to the United Arab Emirates Dirham (AED).
This move, announced on August 21 aims to expand Tether’s portfolio of digital assets and leverage the UAE’s supportive regulatory framework for payment token services.
Developed in partnership with Phoenix Group PLC and Green Acorn Investments Ltd, the Dirham-pegged stablecoin will be backed by liquid AED reserves.
Tether said it guaranteed the stability and confidence of this new product, which is designed to enhance international trade, streamline remittances, and provide a hedge against currency fluctuations.
“The United Arab Emirates is becoming a significant global economic hub, and we believe our Dirham-pegged token will be a valuable addition. It offers businesses and individuals a secure and efficient means of transacting in the UAE Dirham.” Tether’s CEO, Paolo Ardoino, said in the announcement.
The stablecoin market, currently valued at $150 billion, is expected to grow to $2.8 trillion by 2028.
Tether’s USDT dominates the market, representing over $115 billion of the total.
The UAE’s crypto adoption has surged since the establishment of the Virtual Asset Regulatory Authority (VARA) in 2022.
This supportive regulatory environment has transformed cities like Dubai and Abu Dhabi into leading centers for crypto and blockchain innovation.
