Stablecoin

United

Green

Hedge

Phoenix

Tether, the leading stablecoin issuer,&nbsp;<a style="text-decoration:none" href="https://www.reuters.com/technology/tether-provide-stablecoin-pegged-uaes-dirham-2024-08-21/#:~:text=DUBAI%2C%20Aug%2021%20(Reuters),alternatives%20to%20the%20U.S.%20dollar." rel="noopener noreferrer nofollow">announced</a> plans to introduce a new stablecoin pegged to the United Arab Emirates Dirham (AED). The new Dirham-pegged stablecoin will join Tether’s existing lineup of fiat-backed tokens, such as USDT, EURT, and others.
Tether’s decision to launch an AED-pegged stablecoin is part of a broader strategy to enhance its global footprint and meet the needs of different economic regions.&nbsp;
The UAE, known for its significant role as a global economic hub, presents a lucrative market for digital currencies. Tether’s CEO, Paolo Ardoino, stressed the importance of this new product, stating that it aims to provide businesses and individuals with a secure and efficient means of transacting in the UAE Dirham.
<blockquote>
 "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 comply diversifying one's digital assets,” Ardoino&nbsp;<a style="text-decoration:none" href="https://tether.io/news/tether-to-develop-uae-dirham-pegged-stablecoin/" rel="noopener noreferrer nofollow">stated</a>.
</blockquote>
To ensure the successful launch of the AED-pegged stablecoin, Tether has partnered with UAE-based tech conglomerate Phoenix Group PLC and Green Acorn Investments Ltd. The collaborations are expected to enhance the stablecoin's adoption and integration within the UAE's financial ecosystem.
<h2 dir="ltr" id="span-span-potential-benefits-and-use-cases-span-span">Potential Benefits and Use Cases</h2>
The Dirham-pegged stablecoin is expected to offer the following key benefits:
<ul>
 <li>Improved International Trade: The stablecoin will facilitate cross-border payments, allowing businesses to transact more efficiently with UAE-based partners.</li>
 <li>Streamlined Remittances: With many expatriates living in the UAE, the new stablecoin could simplify remittances to and from the country, reducing transaction fees and speeding up transfers.</li>
 <li>Hedge Against Currency Fluctuations: The stablecoin will provide a digital representation of the AED, offering a hedge against currency volatility and enhancing financial stability for users.</li>
</ul>
<h2 dir="ltr" id="span-span-tether-s-recent-activity-span-span">Tether’s Recent Activity</h2>
Tether has been actively minting new USDT tokens, with approximately&nbsp;<a style="text-decoration:none" href="https://x.com/lookonchain/status/1826079364297142457" rel="noopener noreferrer nofollow">$3 billion</a> minted over the past week alone. The Tron network, in particular, has emerged as a key player in the stablecoin space, with a total of $19 billion USDT minted over the past year.
&nbsp;
While the launch of a Dirham-pegged stablecoin presents numerous opportunities, it also raises questions about regulatory oversight and market acceptance.&nbsp;
&nbsp;
There has been criticism of Tether's reserves and transparency in the past, and the introduction of another stablecoin in such a highly regulated country as the UAE will likely require rigorous compliance measures.
&nbsp;
The stablecoin market, currently valued at $150 billion, continues to expand rapidly.&nbsp;
&nbsp;
Tether’s USDT represents over&nbsp;<a style="text-decoration:none" href="https://coinmarketcap.com/currencies/tether/" rel="noopener noreferrer nofollow">$117 billion</a> of this total, showing the company’s dominance in the sector. Industry forecasts predict that the stablecoin market could grow to $2.8 trillion by 2028.

Tether to Launch Dirham-Pegged Stablecoin for UAE, Eyes Gulf Expansion

Table of Contents

BSCN

Other articles published on Aug 22, 2024

Solana Memecoin Trump Loves Elon (TRUMPELO) to Skyrocket 15,000% Before Exchange Listing, As BONK...

Elon Musk’s Latest Tweet Ignites Dogecoin Surge: Why MoonBag and Shiba Inu Are the Top Crypto Pre...

Rumors of Binance’s Legendary CEO CZ’s Release, But Here is the Truth

$700K Grimace Memecoin Scam Hits McDonald’s Instagram

Coolio Resurrected in Metaverse for 30th Anniversary

Fhenix Launches Grant and Bounty Programs to Accelerate Adoption of Its L2 for Confidential Trans...

Join our free newsletter for daily crypto updates!