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Stablecoin issuer Tether has disclosed plans to launch a stablecoin pegged to the United Arab Emirates dirham.
In an Aug. 21 <a href="https://tether.io/news/tether-to-develop-uae-dirham-pegged-stablecoin/" target="_blank" rel="noopener noreferrer nofollow">announcement</a>, the world’s largest stablecoin issuer <a href="https://crypto.news/tag/tether/" target="_blank" rel="noopener noreferrer nofollow">Tether</a> Inc. said the new stablecoin would be launched in collaboration with Phoenix Group PLC, a UAE-based tech giant, and Green Acorn Investments Ltd.
While the exact timeline for the launch wasn’t disclosed, the new asset will be backed 1:1 by liquid UAE-based reserves and issued under the <a href="https://rulebook.centralbank.ae/en/rulebook/payment-token-services-regulation" target="_blank" rel="noopener noreferrer nofollow">Payment Token Services Regulation</a> introduced by the <a href="https://crypto.news/uae-central-bank-rolls-out-cbdc-strategy/" target="_blank" rel="noopener noreferrer nofollow">Central Bank of UAE</a> in June. Tether will seek licensing under this framework to ensure compliance, the press release reads.
According to the announcement, Dubai has witnessed a surge in cryptocurrency use since the establishment of the Virtual Asset Regulatory Authority in 2022. Dubbed VARA, the independent regulatory body oversees the <a href="https://crypto.news/dubais-vara-sets-licensing-deadline-for-crypto-firms/" target="_blank" rel="noopener noreferrer nofollow">licensing, regulation, and governance</a> of the cryptocurrency sector.
Tether expects the new stablecoin to function as a cost-effective alternative to reap the “benefits of the AED” by facilitating international trade and remittances while also acting as a “hedge against currency fluctuations.”
Paolo Ardoino, CEO of Tether, expects the stablecoin to become an “essential tool” for businesses and individuals looking for a “secure and efficient means of transacting” via the dhiram.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 “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.” <cite>Paolo Ardoino</cite>
</blockquote>
You might also like: <a href="https://crypto.news/tether-brings-usdt-stablecoin-to-aptos-blockchain/" rel="noopener noreferrer nofollow"> Tether brings USDT stablecoin to Aptos blockchain </a>
The upcoming stablecoin is set to join other fiat-pegged stablecoins developed by Tether over the years. In 2020, the stablecoin issuer <a href="https://crypto.news/tether-inc-launches-euro-token-eurt/" target="_blank" rel="noopener noreferrer nofollow">launched </a><a href="https://crypto.news/price/euro-tether/" target="_blank" rel="noopener noreferrer nofollow">EURT</a>, the euro-backed stablecoin, and two years later introduced the Chinese yuan-backed <a href="https://crypto.news/tether-launches-yuan-pegged-stablecoin-on-tron/" target="_blank" rel="noopener noreferrer nofollow">CNHT</a>.
However, Tether’s flagship asset, (<a href="https://crypto.news/price/tether/" target="_blank" rel="noopener noreferrer nofollow">USDT</a>), remains the <a href="https://www.coingecko.com/en/categories/stablecoins" target="_blank" rel="noopener noreferrer nofollow">largest stablecoin</a> in the world, with a market capitalization of over $117 billion, translating to an almost 70% market share.
Despite being a market leader, Tether <a href="https://crypto.news/us-senators-warn-of-countries-using-tether-to-circumvent-sanctions/" target="_blank" rel="noopener noreferrer nofollow">has been criticized</a> for possible misuse of USDT by entities facing sanctions and other <a href="https://crypto.news/tether-addresses-un-claims-on-illicit-activity-involving-usdt/" target="_blank" rel="noopener noreferrer nofollow">illicit uses</a>. To address these concerns, Tether <a href="https://crypto.news/tether-taps-chainalysis-to-track-usdt-activity-on-secondary-markets/" target="_blank" rel="noopener noreferrer nofollow">partnered</a> with blockchain analytics firm Chainalysis in a bid to oversee USDT transactions in the secondary market.
Read more: <a href="https://crypto.news/tether-mints-1b-in-usdt-on-tron-blockchain/" rel="noopener noreferrer nofollow"> Tether mints $1b in USDT on TRON blockchain </a>

Tether to develop dirham-pegged stablecoin in UAE

crypto.news

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