- Tether has teamed up with Phoenix Group and Green Acorn Investments to bring a Dirham-pegged stablecoin to the UAE.
- The stablecoin will ensure quick and cost-efficient transactions and remittances as interest in the AED rises worldwide.
Tether, the issuer of the biggest stablecoin by market cap, USDT, is in the works to launch a stablecoin pegged to the Dirham (AED) in the United Arab Emirates (UAE). This move will offer the UAE’s growing crypto user base a stablecoin pegged to their native currency’s price, accelerating adoption. The country is a known crypto hub thanks to its highly favorable digital asset regulations and mechanisms to foster Web3 innovation.
Tether will team up with two entities in the region, Phoenix Group, a mining and blockchain conglomerate, and Green Acorn Investments, an investment firm, to issue the stablecoin. The partnerships will ensure Tether has access to liquid AED reserves and efficiently materialize their value onchain. A press release read, “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.”
Furthermore, Tether CEO Paolo Ardoino mentioned, “The main purpose is actually creating an optionality towards the U.S. dollar,” while speaking of an AED-pegged stablecoin at an event in Dubai. He also spoke about how AED holdings outside the UAE are increasing, showing the rising interest in the currency and how it can become a preferred medium of transaction in global trades. “We see a lot of interest in holding AED outside of the UAE.”
This new stablecoin will ensure that institutions, businesses, and individuals have easier access to the AED while transacting at rates much less than what it costs using traditional means. It will “streamline international trade and remittances, reduce transaction fees, and provide a hedge against currency fluctuations,” according to the press release.
Tether Is Working to Ensure Transaction Efficiency
Sticking to that theme, Tether launched its USDT token on the layer-1 Aptos network to tap into its high speeds and low transaction costs that could amount to “only a fraction of a penny” for every transaction. And that can breed numerous use cases for USDT and crypto in general, including microtransactions and more.
