Tether, the leading stablecoin provider in the digital asset industry, has revealed plans to introduce a new stablecoin tied to the United Arab Emirates dirham (AED).

The press release shared with Cointelegraph indicates that the new stablecoin will be launched in partnership with UAE-based Phoenix Group and Green Acorn Investments.

The partnership is focused on creating a digital version of the dirham currency, which is “fully backed by liquid UAE-based reserves.”

The press release reads:

“Adhering to Tether’s transparent and robust reserve standards, it ensures that every Dirham-pegged token is tied to the value of the AED, providing stability and confidence in its value.”

Tether’s move into the UAE financial market with this dirham-pegged stablecoin is anticipated to offer users an economical way to “access the benefits of the AED.”

The press release mentions that the new stablecoin will “streamline international trade and remittances” by lowering transaction fees and offering protection against currency fluctuations.

Paolo Ardoino, the CEO of Tether, expressed that the company was “pleased” to add the dirham-pegged stablecoin to its “range of stablecoin options" and added:

“The [UAE] 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.”

In collaboration with Phoenix Group, a multibillion-dollar tech conglomerate based in Abu Dhabi, Tether aims to provide businesses and individuals with “an essential tool” for transacting.

The press release also notes that cryptocurrency usage in the UAE has surged since 2022, “driven by the establishment of the Virtual Asset Regulatory Authority.”

Seyed Mohammad Alizadehfard, co-founder and Group CEO of Phoenix Group, commented that the partnership “reflects” the company’s “dedication to providing financial solutions” to its customers.

On Aug. 19, Tether launched its Tether token on the layer-1 Aptos blockchain to enhance global digital currency access and usage while reducing transaction costs.

With Aptos’ speed and scalability, Tether aims to offer the blockchain’s users “extremely low gas fees, costing only a fraction of a penny.”

This integration is expected to make transaction fees on Aptos using USDT “economically viable” for a variety of use cases, including large-scale enterprise operations and microtransactions.

Sources:

https://cointelegraph.com/news/tether-aed-stablecoin-uae-partners-launch

https://www.crowdfundinsider.com/2024/08/229128-tether-and-uaes-phoenix-group-to-develop-aed-pegged-stablecoin