- Tether Expands into the UAE Market
- Benefits for International Trade and Remittances
- Aligning with the UAE’s Crypto Boom
Tether has announced plans to launch a new stablecoin backed by the United Arab Emirates Dirham (AED). This program was launched in cooperation with the UAE’s Phoenix Group and Green Acorn Investments to enhance remittance services.
Tether Expands into the UAE Market
USDT issuer Tether’s entry into the UAE market is a strategic decision that aims to harness the Middle East’s potential. The dirham-pegged stablecoin will give users a cheap and efficient method of accessing AED and hence reduce transaction costs while protecting against rate fluctuations.
Benefits for International Trade and Remittances
The dirham-pegged stablecoin will revolutionize international trade and remittances to make cross-border transactions easier. Moreover, Tether met all the requirements for stability, providing clear reserve information to show that the stablecoin is fully backed. As a result, due to the low transaction fees, individuals and large companies can use the stablecoin to conduct international business.
Aligning with the UAE’s Crypto Boom
The launch of the dirham-backed stablecoin aligns with the UAE’s continued push towards cryptocurrencies. Due to favorable laws like VARA, the country has witnessed the rise of crypto investments since 2022. Moreover, the UAE has been progressive in regulating crypto assets and adopting blockchain. Analysts expect the global stablecoin market to grow to $2.8 trillion by 2028.
The Tether stablecoin backed by the UAE Dirham has high potential for growth amidst favorable conditions in the UAE crypto market and conformity to reserve standards.
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