Tether, the leading stablecoin issuer in the cryptocurrency sector, has revealed plans to launch a new stablecoin pegged to the United Arab Emirates dirham (AED). This initiative is in collaboration with local partners Phoenix Group and Green Acorn Investments.
The forthcoming stablecoin aims to create a digital equivalent of the dirham, which will be “fully backed by liquid reserves located in the UAE.” Tether emphasizes its commitment to transparency and robust reserve standards, ensuring that each dirham-pegged token maintains a stable value in line with the AED.
Enhancing Financial Transactions in the UAE
Tether’s entry into the UAE market with this dirham-pegged stablecoin is expected to offer users a cost-effective means of leveraging the benefits of the AED. The new digital asset is designed to facilitate international trade and remittances, while also minimizing transaction costs and providing a safeguard against currency volatility.
Paolo Ardoino, Tether’s CEO, expressed enthusiasm about the addition of the dirham-backed stablecoin to their portfolio, highlighting the UAE’s emergence as a vital global economic center. He believes that this new offering will serve as a valuable and versatile tool for users.
Collaboration with Phoenix Group
In partnership with Phoenix Group, a prominent technology conglomerate based in Abu Dhabi, Tether aims to equip businesses and individuals with a crucial tool for conducting transactions. The press release notes that cryptocurrency adoption in the UAE has surged since 2022, largely due to the establishment of the Virtual Asset Regulatory Authority.
Seyed Mohammad Alizadehfard, co-founder and Group CEO of Phoenix Group, stated that this partnership underscores their commitment to delivering innovative financial solutions to their clientele.
Expansion to the Aptos Blockchain
On August 19, Tether also announced the launch of its Tether $1.00 token on the Aptos layer-1 blockchain. This move is intended to enhance global access to digital currencies and reduce transaction costs. By leveraging Aptos’ speed and scalability, Tether aims to offer users extremely low transaction fees, making it economically feasible for a wide range of applications, from large enterprises to microtransactions.
