Tether Launches Dirham-Backed Stablecoin in the UAE
Tether is partnering with Phoenix Group and Green Acorn Investments in the United Arab Emirates to create a dirham-linked stablecoin aimed at facilitating international trade and remittances. Tether, the largest stablecoin provider in the digital asset sector, has announced its plans to launch a new stablecoin pegged to the United Arab Emirates dirham (AED). According to a press release shared with Cointelegraph, the new stablecoin will be launched in partnership with Phoenix Group and Green Acorn Investments, both UAE-based companies.
The main objective of this collaboration is to establish a digital representation of the dirham currency, which will be “fully backed by liquid reserves in the UAE.” This will ensure the stability and reliability of its value. “Following Tether’s transparent and robust reserve standards, each dirham-linked token is guaranteed to be pegged to the value of the AED, providing stability and confidence.”
Tether expands its market in the UAE
Separately, Tether’s expansion into the UAE financial market with its new dirham-linked stablecoin is expected to provide users with a cost-effective and easily accessible means to “access the benefits of the AED.”
The press release states that the new stablecoin will “streamline international trade and remittances” by lowering transaction fees and providing a hedge against currency fluctuations. Paolo Ardoino, CEO of Tether, explained that the company is “delighted” to add the dirham-linked stablecoin to its “range of stablecoin options.”
“The UAE is transforming into a major global economic hub, and we believe our users will find our dirham-linked token to be a valuable and versatile addition.”
Collaboration with Phoenix Group
In partnership with Phoenix Group, a multi-billion-dollar technology conglomerate based in Abu Dhabi, Tether seeks to provide businesses and individuals with an “essential tool” for transactions.
According to the press release, the use of cryptocurrencies in the UAE has grown exponentially since 2022, driven primarily “by the establishment of the Virtual Assets Regulatory Authority.” Indeed, this boom reflects a considerable shift in the adoption of digital assets in the region.
Seyed Mohammad Alizadehfard, co-founder and CEO of Phoenix Group, stated that the partnership “reflects” the firm’s “dedication to providing financial solutions” to its clients.
Tether’s expansion to the Aptos blockchain
On August 19, Tether introduced its USDT token on the Aptos Layer 1 blockchain, with the goal of improving access to and use of the digital currency worldwide and reducing transaction costs. Thanks to the speed and scalability of Aptos, Tether aims to offer blockchain users “extremely low gas fees, costing only a fraction of a cent.”
Through this integration, transaction fees on Aptos using USDT will become “economically viable” for many use cases, including larger-scale enterprise operations and microtransactions.
