Stablecoin issuer Tether plans to launch a new stablecoin pegged to the United Arab Emirates Dirham (AED), expanding its portfolio of digital assets.
Developed in partnership with UAE-based technology giant Phoenix Group PLC and supported by Green Acorn Investments Ltd, the project leverages the UAE’s regulatory framework for payment token services.
UAE Dirham Pegged Stablecoin
According to the official press release: CryptopotatoThe dirham-pegged stablecoin is backed by liquid AED reserves and adheres to Tether’s standards to ensure “stability and trust.”
The new product aims to provide a digital representation of the AED, improving international trade, streamlining remittances, and providing a hedge against exchange rate fluctuations. Tether’s new dirham-pegged stablecoin joins the company’s list of other fiat-backed tokens, including USDT and EURT.
Commenting on the potential impact, Tether CEO Paolo Ardoino said:
“The UAE is becoming a significant global economic hub, and we believe our users will find our Dirham-pegged token a valuable and versatile addition. Whether for cross-border payments, trading, or simply diversifying their digital assets, Tether’s Dirham-pegged stablecoin will be an essential tool for businesses and individuals seeking a safe and efficient means of transacting in the UAE Dirham.”
The stablecoin market is currently worth $150 billion, with USDT accounting for more than $115 billion of that, according to the company’s estimates. Furthermore, industry forecasts predict that the sector could grow to $2.8 trillion by 2028.
Cryptocurrency Adoption in the UAE
Crypto adoption in the UAE has surged since 2022, largely due to the establishment of the Virtual Asset Regulatory Authority (VARA), the first independent regulatory body of its kind. This supportive regulatory environment has made cities like Dubai and Abu Dhabi a leading hub for cryptocurrency and blockchain innovation.
According to recent figures from Bitget Research, cryptocurrency usage has skyrocketed in the Middle East, with the average number of daily traders surpassing 500,000 in February 2024. The UAE leads the way in per capita cryptocurrency adoption, peaking at 106,111 daily active users in 2024, a 68% increase in daily traders year-on-year.
Binance FREE $600 (CryptoPotato Exclusive): Register a new account using this link and get an exclusive $600 welcome offer from Binance. (Full details).
Limited 2024 Special Offer on BYDFi Exchange: Get up to $2,888 Welcome Reward. Register using this link and open a 100 USDT-M position for free!