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Tether, the world's largest stablecoin issuer, announced today its plans to launch a UAE Dirham (AED)-pegged stablecoin in collaboration with Phoenix Group, Tether said in a statement on Wednesday.
According to the company, the Dirham-pegged stablecoin will be fully backed by liquid UAE-based reserves, ensuring its stability and security. It aims to provide users with a seamless and cost-effective way to transact in the AED, both domestically and internationally. The token is expected to play a crucial role in streamlining trade, remittances, and reducing transaction fees within the UAE and beyond.
"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," said Paolo Ardoino, CEO of Tether.
The global stablecoin market is estimated to reach $2.8 trillion by 2028, according to Tether. Tether's USD-pegged USDT currently has $117 billion in circulation, dominating the $169 billion stablecoin market.
The token's launch comes at a time when the UAE is rapidly embracing digital technologies and solidifying its position as a global financial center. The UAE has been witnessing a surge in cryptocurrency adoption in recent years, driven by the establishment of the Virtual Asset Regulatory Authority (VARA). Dubai and Abu Dhabi have emerged as global hubs for innovation in crypto assets and blockchain technology, attracting numerous businesses and investors.
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"Abu Dhabi’s progressive stance towards blockchain, digital assets and innovation makes it the perfect launchpad," commented Seyedmohammad Alizadehfard, co-founder and Group CEO of Phoenix Group.
In other UAE crypto news, a recent landmark ruling by the Dubai Court of First Instance recognized crypto payments for salaries under employment contracts. This decision marks a significant step towards the wider acceptance and integration of cryptocurrencies in the UAE.
