Tether’s other stablecoins, such as those pegged to the US dollar (USDT), the European euro (EURT), Mexican pesos (MXNT), Chinese yuan (CNHT), and Tether Gold (XAUt), which monitors the value of tangible gold, will be joined by the new product upon its launch.
Tether, a prominent global stablecoin issuer, intends to introduce a new stablecoin that is 1:1 pegged to the value of the United Arab Emirates Dirham (AED). The upcoming product will be entirely supported by liquid UAE-based reserves, as per a Wednesday announcement, in accordance with the company’s standards to “ensure stability and trust in its value.”
The new stablecoin is presently in the early stages of development. Phoenix Group PLC, a prominent tech conglomerate in the Arab region, and Green Acorn Investments Ltd have formed a partnership with Tether to introduce the stablecoin to the market.
The three companies are collaborating to guarantee that the Dirham-pegged stablecoin, which functions as a digital representation of the fiat currency, remains stable and consistently aligns with the reserve assets.
According to Seyedmohammad Alizadehfard, co-founder of Phoenix Group, the digital asset will have a transformational effect on the crypto market in the United Arab Emirates.
He expressed his enthusiasm for the opportunity to collaborate with Tether in the development of a stablecoin anchored to the UAE Dirham and is optimistic about its potential to revolutionize the digital economy for users in the region and beyond.
Tether’s other stablecoins, such as those pegged to the US dollar (USDT), the European euro (EURT), Mexican pesos (MXNT), Chinese yuan (CNHT), and Tether Gold (XAUt), which monitors the value of tangible gold, will be joined by the new product upon its launch.
Tether contends that the new digital asset will offer consumers the advantages of blockchain technology while maintaining a 1:1 peg to the Dirham. The stablecoin endeavors to decrease transaction fees and enhance the quickness and transparency of payments by transferring transactions to the blockchain.
The digital asset is anticipated to simplify international trade and remittances, as well as provide a hedge against currency fluctuations, which are two substantial obstacles for companies and investors in the UAE market.
The Central Bank’s recently announced Payment Token Services Regulation will govern the Dirham-pegged stablecoin.
Ardoino underscored that the stablecoin’s introduction in the UAE would contribute substantially to the region’s customer base.
Ardoino stated, “We are confident that our Dirham-pegged token will be a valuable and versatile addition for our users, as the United Arab Emirates is rapidly becoming a global economic center.”
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