Lawrence Damilola
Tether has launched a new stablecoin pegged to the United Arab Emirates Dirham (AED). The move is part of a strategic partnership with UAE-based Phoenix Group and Green Acorn Investments.
Tether said in a statement Wednesday that the stablecoin will be “fully backed by liquid UAE-based reserves” and will adhere to its “transparent and robust reserve standards.” The stablecoin aims to provide a digital representation of the UAE dirham.
Tether’s CEO, Paolo Ardoino, highlighted the importance of the new stablecoin, stating, “The UAE is becoming a significant global economic hub.”
He added that the Dirham-pegged stablecoin would be a “valuable and versatile addition” for users, providing a cost-effective option to access the AED. Ardoino also mentioned that “we see a lot of interest in holding AED outside of the UAE,” noting the stability and safety of the country’s economy as key factors driving demand.
Phoenix Group’s co-founder and CEO Seyed Mohammad Alizadehfard expressed the company’s enthusiasm about the collaboration, emphasizing its goal of delivering innovative financial solutions. He described the partnership as an opportunity to offer businesses and individuals in the UAE an “essential tool” for digital transactions.
The launch of the Dirham-pegged stablecoin comes as the UAE strengthens its position as a hub for cryptocurrency and blockchain technology. Since establishing the Virtual Asset Regulatory Authority (VARA) in Dubai, the country has seen increased investment in the sector. Tether’s new offering is expected to align with these developments.
Recent crypto-related rulings in the UAE also highlight its openness to integrating digital assets into its legal framework. A recent case in the Dubai Court of First Instance involved a dispute over a salary paid partly in cryptocurrency, demonstrating a “progressive approach” to digital currencies, according to Irina Heaver, a partner at NeosLegal.
Tether’s expansion into the UAE follows its strategy of introducing stablecoins tailored to regional markets. In the statement, Tether emphasized that the dirham stablecoin would be “fully backed” by UAE-based reserves. The stablecoin is intended to “streamline international trade and remittances, reduce transaction fees, and provide a hedge against currency fluctuations.” CEO Ardoino noted that the licensing process with the UAE Central Bank could take a few months before the stablecoin becomes fully operational.
Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
