Tether, the largest stablecoin issuer, announces plans to release a new stablecoin pegged to the United Arab Emirates Dirham (AED).
Launch of Dirham-Pegged Stablecoin
The program is partnered with UAE-based Phoenix Group, a multibillion-dollar technology conglomerate listed on the Abu Dhabi Securities Exchange. Backed by Green Acorn Investments, this initiative aims to create a digital currency that bridges the gap between traditional finance and the digital economy. The new stablecoin will track the value of the UAE Dirham, providing a safe and reliable digital asset for investors, businesses, and consumers.
Benefits of the New Stablecoin
The Dirham-pegged stablecoin will be based on advanced blockchain technologies, ensuring safety, transparency, and high efficiency. It will be fully backed by UAE-based reserves and issued under the United Arab Emirates Central Bank's regulatory framework. This includes compliance with the June regulation for payment tokens and the acquisition of the necessary licensing for full compliance.
Comment from Tether CEO
Tether CEO Paolo Ardoino noted that the Dirham-pegged stablecoin might become an 'essential tool' for companies and individuals seeking a 'secure and efficient' form of transacting via Dirham. The new asset will facilitate international trade and remittances, serving as a hedge against currency fluctuations.
This step follows the issuance of other fiat currency-pegged stablecoins like EURT and CNHT. The stable regulatory environment makes the UAE a crucial hub for crypto innovation, drawing attention to new digital assets.
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