Tether plans to launch a UAE dirham-pegged stablecoin

Stablecoins • August 21, 2024, 6:30AM EDT

Quick Take

Tether plans to launch a stablecoin pegged to the UAE dirham.
The token would come in collaboration with Phoenix Group and Green Acorn Investments.

Tether plans to launch a new stablecoin pegged to the United Arab Emirates dirham in collaboration with Phoenix Group and Green Acorn Investments.

According to a press release, the token will "lead the way in seeking licensing under the UAE Central Bank's recently announced Payment Token Services Regulation."

According to Tether, the dirham-pegged stablecoin will provide users with a more cost-effective and transparent way of accessing the currency and a hedge against currency fluctuations.

"We're pleased to announce this initiative to develop Tether's Dirham-pegged stablecoin, adding to our range of stablecoin options," Tether CEO Paolo Ardoino said.

"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," he added, claiming: "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."

Tether's dirham-pegged stablecoin joins the company's stable of other fiat-pegged tokens, such as USDT and EURT. Tether has long been and remains the largest issuer of stablecoins by market capitalization.

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Adam is the managing editor for Europe, the Middle East and Africa. He is based in central Europe and was a managing editor and podcast host at the crypto exchange OKX's former research arm, OKX Insights. Before that, he co-founded BeInCrypto.com, which he elevated into one of the leading crypto media brands at its peak as the editor-in-chief. Earlier, he served as the editor-in-chief at Bitcoinist.com. Before joining the blockchain and crypto industry, he worked for Looper.com, Grunge.com and SVG.com. He tweets via @XBT002 and can be emailed at [email protected].