Tether Teams Up with UAE Firm to Introduce Dirham-pegged Stablecoin

Key Takeaways

• Tether is launching a new stablecoin pegged to the UAE Dirham.
• Tether is collaborating with UAE-based companies to launch the new stablecoin.
• The new stablecoin aims to expand Tether’s market share and provide a new option for users in the UAE.

Tether, a leading stablecoin issuer, has announced  its intention to create a new stablecoin pegged to the United Arab Emirates Dirham (AED). 

The stablecoin aims to facilitate cross-border payments, trading, and asset diversification.

Tether Introduces New AED-Pegged Stablecoin to Serve UAE Businesses

In the announcement, Tether disclosed plans to collaborate with UAE-based tech conglomerate Phoenix Group PLC  and Green Acorn Investments Ltd to launch the still-to-be-named stablecoin.

Paolo Ardoino, Tether’s CEO, described the UAE as a “significant global economic hub” and stated that the stablecoin is designed to cater to “businesses and individuals seeking a secure and efficient method for transactions in the United Arab Emirates Dirham.” 

Ardoino stated:

“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. 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.”

The new Dirham-pegged stablecoin will expand Tether’s current portfolio, which already includes stablecoins tied to the US Dollar, Euro, Chinese Yuan, and Mexican Peso.

Ardoino explained that the new stablecoin is designed to offer users the advantages of the AED through blockchain technology. Tether believes that this digital asset could simplify international trade and remittances, lower transaction costs, and serve as a safeguard against currency fluctuations.

UAE’s Crypto-Friendly Policies Attract Tether’s New Stablecoin

The launch of the new stablecoin aligns with the UAE’s ongoing efforts to establish itself as a center for cryptocurrency and blockchain innovation. 

Since 2022, the UAE has experienced a significant increase in cryptocurrency investments, a boost partly driven by the creation of the Virtual Asset Regulatory Authority in Dubai.

In 2023, Coinbase CEO Brian Armstrong commended  the UAE for its “forward-thinking” approach to digital assets, and crypto exchange Binance pointed to the region as a strategic hub for the industry.

Seyed Mohammad Alizadehfard, co-founder and CEO of Phoenix Group, also expressed enthusiasm for the partnership. He emphasized Abu Dhabi’s progressive policies towards blockchain and digital assets, underscoring the region’s welcoming environment for such technological advancements.

Tether Recommits to Transparency Amid Expanding Stablecoin Market

Tether has stated that each new token will be fully backed by liquid reserves located in the UAE, maintaining consistency with its current backing standards. 

It’s worth noting that these standards have been scrutinized in the past, and Tether has not yet secured an audit from any of the Big Four accounting firms—Deloitte, PwC, EY, and KPMG. 

CEO Paolo Ardoino has emphasized  that obtaining such an audit remains a “top priority” for the company.

The global market for stablecoins is currently valued at $150 billion, and forecasts indicate it could expand to $2.8 trillion by 2028. Among these, Tether’s USDT stablecoin holds the largest market share, with a reported market capitalization exceeding $117 billion , according to data from CoinMarketCap.

About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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