Tether to Introduce UAE Dirham Stablecoin—A New Frontier in Digital Currency?

• Tether’s AED-pegged stablecoin aims to provide a transparent, cost-effective hedge against currency fluctuations fully backed by UAE-based reserves.
• The AED-pegged stablecoin will also support the UAE’s growing economic activities, offering businesses and individuals an efficient and secure means for trading, cross-border payments, and digital asset diversification.

Stablecoin issuer Tether recently announced its plans to launch a new stablecoin pegged to the United Arab Emirates dirham (AED) in partnership with Green Acorn Investments and Phoenix Group.

The press release notes that the AED stablecoin will lead the path of seeking licenses under the UAE Central Bank’s recently announced Payment Token Services Regulation. This new AED-pegged stablecoin from Tether will prove a transparent and cost-effective way of accessing the asset while acting as a hedge against currency fluctuations in the market. Thus, the AED stablecoins will be fully backed by liquid UAE-based reserves. Speaking on this development, Phoenix Group, the Abu Dhabi-based multibillion-dollar tech conglomerate, noted:

Adhering to Tether’s transparent and robust reserve standards, it ensures that every Dirham-pegged token is tied to the value of the AED, providing stability and confidence in its value.

Launching the dirham-pegged stablecoin in the UAE financial market will provide users with a cost-effective method to access the benefits of the AED. As per the press release, the next stablecoin will “streamline international trade and remittances,” thereby reducing the transaction fees by offering a hedge against currency fluctuations.

Tether CEO Eyes Huge Opportunity in the UAE Market

Tether CEO Paolo Ardoino lauded this development. The dirham-pegged stablecoin will help support the UAE’s rapidly growing economic activities. He added:

We’re pleased to announce this initiative to develop Tether’s Dirham-pegged stablecoin, adding to our range of stablecoin options. 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.

Ardoino added that the AED-pegged stablecoin would be an essential tool for individuals and businesses looking for an efficient and secure means of transacting in AED for different purposes, such as trading, cross-border payments, or diversifying one’s digital assets.

Tether’s dirham-pegged stablecoin adds to its list of fiat-pegged tokens, including USDT and EURT. Tether continues to hold its position as the largest issuer of stablecoins by market capitalization. However, with Ripple stepping into the stablecoin market with its RLUSD stablecoin, Crypto News Flash reported that Tether is likely to face growing competition moving ahead.

Partnership With Aptos

Tether recently partnered with the Aptos Network to launch the USDT stablecoin on its platform. As reported by Crypto News Flash, Tether is planning to harness Aptos’ blockchain technology, which is recognized for its outstanding speed and scalability and thus provides a more robust platform for users.

Integrating USDT into the Aptos blockchain aims to enhance the network’s appeal while providing users with Tether’s reliability and stability.