Tether, the major stablecoin issuer, has announced plans to create a new stablecoin linked to the United Arab Emirates Dirham (AED).
Tether, the major stablecoin issuer, has announced plans to create a new stablecoin linked to the United Arab Emirates Dirham (AED). Tether CEO Paolo Ardoino emphasized the UAE's role as a "significant global economic hub," stating that the stablecoin will cater to businesses and individuals seeking secure and efficient transactions in AED, including cross-border payments and asset diversification.
Ardoino highlighted that the new stablecoin aims to offer benefits associated with the AED while leveraging blockchain technology.
He said, “The United Arab Emirates is becoming a significant global economic hub, and we believe our users will find our Dirham-pegged token to be a valuable and versatile addition. Tether’s Dirham-pegged stablecoin is set to become an essential tool for businesses and individuals looking for a secure and efficient means of transacting in the United Arab Emirates Dirham whether for cross-border payments, trading, or simply diversifying one’s digital assets.”
The company assures that the new token will be fully backed by liquid UAE-based reserves, adhering to its existing standards, although Tether has yet to secure an audit from a Big Four accounting firm—a goal Ardoino identifies as a "top priority."
Tether will collaborate with UAE-based Phoenix Group PLC and Green Acorn Investments Ltd. on the stablecoin's launch. This Dirham-pegged token will join Tether's existing range of stablecoins, which include those tied to the US Dollar, Euro, Chinese Yuan, and Mexican Peso.
The UAE continues to emerge as a hub for cryptocurrency and blockchain innovation. The establishment of the Virtual Asset Regulatory Authority in Dubai has spurred crypto investments since 2022. Phoenix Group's Co-Founder and CEO, Seyedmohammad Alizadehfard, expressed optimism about the partnership, noting Abu Dhabi's forward-thinking stance on blockchain and digital assets.
Tether, known for its USDT stablecoin, reported a record profit of $5.2 billion in the first half of 2024. The global stablecoin market is valued at $150 billion and is projected to grow to $2.8 trillion by 2028.
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