Crypto News – Tether to Launch New UAE Dirham-Pegged Stablecoin Amid Growing Crypto Adoption

Crypto News – Tether Expands Global Reach with AED-Pegged Stablecoin in the UAE

Crypto News – Tether, the issuer of the world’s largest stablecoin by market share, has announced plans to develop a new stablecoin pegged to the United Arab Emirates Dirham (AED). This move is part of Tether’s broader strategy to expand its range of fiat-backed digital assets and strengthen its presence in the Middle East, a region increasingly viewed as a burgeoning hub for cryptocurrency and blockchain innovation.

UAE: A Key Global Economic Hub

In a statement shared with Decrypt, Tether CEO Paolo Ardoino described the UAE as a “significant global economic hub,” emphasizing that the new stablecoin is designed to meet the needs of businesses and individuals seeking a secure and efficient means of transacting in AED. The stablecoin is expected to facilitate cross-border payments, trading, and asset diversification, leveraging blockchain technology to streamline international trade and remittances.

Strategic Collaboration in the UAE

To bring this new stablecoin to market, Tether has outlined plans to collaborate with UAE-based tech conglomerate Phoenix Group PLC and Green Acorn Investments Ltd. This partnership is expected to play a crucial role in the stablecoin’s launch, although the exact timeline and name of the stablecoin have yet to be disclosed.

Tether’s Expanding Stablecoin Portfolio

The AED-pegged token will join Tether’s existing lineup of stablecoins, which currently includes those pegged to the US Dollar (USDT), Euro (EURT), Chinese Yuan (CNHT), and Mexican Peso (MXNT). Ardoino noted that the new stablecoin aims to provide users with access to the benefits of the AED while utilizing the efficiency and transparency of blockchain technology. Tether claims that the digital asset could potentially reduce transaction fees and offer a hedge against currency fluctuations, making it an attractive option for global traders and investors.

UAE’s Growing Crypto and Blockchain Ecosystem

The launch of this new stablecoin comes as the UAE continues to solidify its position as a leading hub for cryptocurrency and blockchain innovation. Since the establishment of the Virtual Asset Regulatory Authority in Dubai in 2022, the country has seen a surge in crypto investment. Prominent figures in the industry, such as Coinbase CEO Brian Armstrong, have praised the UAE’s forward-thinking approach to digital assets, while Binance has identified the region as a key focal point for the crypto industry.

Phoenix Group’s Co-Founder and Group CEO, Seyedmohammad Alizadehfard, expressed optimism about the collaboration with Tether, highlighting Abu Dhabi’s progressive stance towards blockchain and digital assets. According to Tether, each token will be fully backed by liquid UAE-based reserves, consistent with the firm’s existing standards. However, it’s worth noting that Tether has yet to receive an audit from one of the Big Four accounting firms—Deloitte, PwC, EY, and KPMG—a priority that Ardoino has stated remains on the company’s agenda.

Market Potential and Future Outlook

The global stablecoin market, currently valued at $150 billion, is projected to grow to $2.8 trillion by 2028, driven by increasing adoption and use cases. Tether’s USDT stablecoin, the largest by market cap, currently boasts a market valuation of over $117 billion, according to CoinGecko. As Tether expands its offerings with the introduction of an AED-pegged stablecoin, the company is poised to further cement its dominance in the rapidly growing stablecoin market.

In summary, Tether’s latest venture into the UAE’s financial landscape underscores the company’s commitment to innovation and its strategic focus on emerging markets. As the global demand for stablecoins continues to rise, Tether’s move to introduce an AED-pegged stablecoin positions it at the forefront of the evolving digital asset ecosystem.

FAQ: Tether’s New UAE Dirham-Pegged Stablecoin