Stablecoin

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Phoenix

Tether, the leading stablecoin issuer,&nbsp;<a style="text-decoration:none" href="https://www.reuters.com/technology/tether-provide-stablecoin-pegged-uaes-dirham-2024-08-21/#:~:text=DUBAI%2C%20Aug%2021%20(Reuters),alternatives%20to%20the%20U.S.%20dollar." rel="noopener noreferrer nofollow">announced</a> plans to introduce a new stablecoin pegged to the United Arab Emirates Dirham (AED). The new Dirham-pegged stablecoin will join Tether’s existing lineup of fiat-backed tokens, such as USDT, EURT, and others.
Tether’s decision to launch an AED-pegged stablecoin is part of a broader strategy to enhance its global footprint and meet the needs of different economic regions.&nbsp;
The UAE, known for its significant role as a global economic hub, presents a lucrative market for digital currencies. Tether’s CEO, Paolo Ardoino, stressed the importance of this new product, stating that it aims to provide businesses and individuals with a secure and efficient means of transacting in the UAE Dirham.
<blockquote>
 "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,” Ardoino&nbsp;<a style="text-decoration:none" href="https://tether.io/news/tether-to-develop-uae-dirham-pegged-stablecoin/" rel="noopener noreferrer nofollow">stated</a>.
</blockquote>
To ensure the successful launch of the AED-pegged stablecoin, Tether has partnered with UAE-based tech conglomerate Phoenix Group PLC and Green Acorn Investments Ltd. The collaborations are expected to enhance the stablecoin's adoption and integration within the UAE's financial ecosystem.
<h2 dir="ltr" id="span-span-potential-benefits-and-use-cases-span-span">Potential Benefits and Use Cases</h2>
The Dirham-pegged stablecoin is expected to offer the following key benefits:
<ul>
 <li>Improved International Trade: The stablecoin will facilitate cross-border payments, allowing businesses to transact more efficiently with UAE-based partners.</li>
 <li>Streamlined Remittances: With many expatriates living in the UAE, the new stablecoin could simplify remittances to and from the country, reducing transaction fees and speeding up transfers.</li>
 <li>Hedge Against Currency Fluctuations: The stablecoin will provide a digital representation of the AED, offering a hedge against currency volatility and enhancing financial stability for users.</li>
</ul>
<h2 dir="ltr" id="span-span-tether-s-recent-activity-span-span">Tether’s Recent Activity</h2>
Tether has been actively minting new USDT tokens, with approximately&nbsp;<a style="text-decoration:none" href="https://x.com/lookonchain/status/1826079364297142457" rel="noopener noreferrer nofollow">$3 billion</a> minted over the past week alone. The Tron network, in particular, has emerged as a key player in the stablecoin space, with a total of $19 billion USDT minted over the past year.
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While the launch of a Dirham-pegged stablecoin presents numerous opportunities, it also raises questions about regulatory oversight and market acceptance.&nbsp;
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There has been criticism of Tether's reserves and transparency in the past, and the introduction of another stablecoin in such a highly regulated country as the UAE will likely require rigorous compliance measures.
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The stablecoin market, currently valued at $150 billion, continues to expand rapidly.&nbsp;
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Tether’s USDT represents over&nbsp;<a style="text-decoration:none" href="https://coinmarketcap.com/currencies/tether/" rel="noopener noreferrer nofollow">$117 billion</a> of this total, showing the company’s dominance in the sector. Industry forecasts predict that the stablecoin market could grow to $2.8 trillion by 2028.

Tether to Launch Dirham-Pegged Stablecoin for UAE, Eyes Gulf Expansion

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