Tether is set to introduce a new stablecoin backed by the United Arab Emirates Dirham (AED). This initiative, developed in partnership with Phoenix Group and Green Acorn Investments, seeks to enhance remittance services in the region.
The stablecoin will be fully supported by UAE-based reserves, ensuring its value remains pegged to the AED.
Targeting the UAE Market
The move is part of Tether’s broader strategy to tap into the Middle East’s growing crypto landscape. With the dirham-pegged stablecoin, users will gain an efficient and cost-effective way to access AED, minimizing transaction costs and protecting against currency fluctuations.
Boost for International Trade
This stablecoin is expected to simplify cross-border transactions, making it easier for individuals and businesses to engage in international trade.
Tether has ensured transparency by meeting all stability requirements and providing clear information about its reserves, boosting confidence in the stablecoin’s backing.
UAE’s Crypto-Friendly Environment
The UAE has seen a surge in cryptocurrency use, thanks in part to initiatives like Dubai’s Virtual Asset Regulatory Authority (VARA). Tether’s entry into the market aligns with the UAE’s ambitions to become a leading hub for digital assets, supported by progressive crypto regulations.
Market Outlook
Analysts predict that the global stablecoin market will expand significantly, potentially reaching $2.8 trillion by 2028. Tether’s AED-pegged stablecoin could benefit from this growth, particularly given the UAE’s positive stance on crypto and Tether’s commitment to maintaining reserve standards.