Financial Innovation in the UAE: Tether to Launch AED-Pegged Stablecoin

Tether Limited is set to redefine the financial scene in the UAE with the launch of a new stablecoin pegged to the Dirham.

Backed by high-liquidity reserves and developed in collaboration with key UAE partners, this innovative digital currency promises secure and efficient transactions, positioning the UAE as a global hub for virtual assets.

Dive into the details of how this new stablecoin could transform international trade, remittances, and more.

Collaboration with Phoenix Group and Green Acorn Investments

Tether Limited, known for issuing the US dollar-pegged stablecoin "USDT," announced on August 21, 2024, its plans to develop a new stablecoin pegged to the UAE Dirham (AED).

This new digital currency will be fully backed by high-liquidity reserves in the United Arab Emirates (UAE), ensuring that each token reflects the value of the Dirham, maintaining stability and reliability in line with Tether's rigorous standards.

This initiative is a joint effort between Tether and the Phoenix Group, a leading entity in the UAE's economic sector. Green Acorn Investments has also expressed its support, drawing attention from both inside and outside the industry.

Paolo Ardoino, CEO of Tether, highlighted that the newly developed Dirham-pegged stablecoin will become an essential tool for businesses and individuals seeking secure and efficient transactions in AED.

We are pleased to announce the development of the AED-pegged stablecoin, expanding Tether's range of stablecoin offerings. The UAE's influence in the global economy is growing day by day.

We are confident that the Dirham-pegged token we are developing will offer new possibilities for our users.

Tether's AED-pegged stablecoin will be a crucial tool in facilitating safe and rapid transactions in international remittances, trading, and the diversification of digital assets using the UAE Dirham.

Strategic Vision of Phoenix Group

Seyed Mohammad Alizadeh Fard, CEO of the Phoenix Group, who co-announced the initiative, emphasized, "This partnership underscores our commitment to innovation, and Abu Dhabi's forward-thinking stance makes it the ideal starting point for this venture."

The new stablecoin is expected to have a significant impact on the UAE's financial ecosystem, potentially enhancing international trade efficiency, reducing transaction costs, and streamlining remittances.

The stablecoin market is currently valued at $150 billion, with projections suggesting it could grow to $2.8 trillion by 2028.

Since the establishment of the Virtual Asset Regulatory Authority (VARA) in 2022, the use of cryptocurrencies in the UAE has surged. Dubai and Abu Dhabi are solidifying their positions as global hubs for virtual assets and blockchain technology.

Given Tether's ongoing efforts, including the development of gold-backed and other innovative USD stablecoins, future announcements and new products are highly anticipated.

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