Tether partners with Phoenix Group from the UAE to introduce a dirham-backed stablecoin designed to enhance international trade.
Tether, the largest stablecoin provider in the crypto market, has announced plans to introduce a new stablecoin pegged to the United Arab Emirates dirham (AED) in collaboration with UAE’s multi-billion dollar tech conglomerate Phoenix Group PLC and with support from Green Acorn Investments Ltd, a firm dedicated to investing in companies working to improve the healthcare system, from pharma to community care and beyond.
The firm noted in the press release that the token will lead the way in obtaining approval under the newly introduced Payment Token Services Regulation by the UAE Central Bank.
Tether Debuts Dirham-Pegged Stablecoin
According to Tether, the Dirham-pegged stablecoin will offer users a smooth and cost-effective way of accessing the AED’s benefits while harnessing blockchain technology’s transparency and efficiency.
Additionally, the new stablecoin will “streamline international trade and remittances” while reducing transaction fees and offering a hedge against currency fluctuations.
Commenting on the latest development, Tether CEO Paolo Ardoino said:
“We’re pleased to announce this initiative to develop Tether’s Dirham-pegged stablecoin, adding to our range of stablecoin options.”
Ardoino explained that Tether’s Dirham-pegged stablecoin is poised to be a crucial resource for businesses and individuals seeking a reliable and efficient method to transact in the UAE Dirham, whether for international payments, trading, or diversifying digital assets.
“The United Arab Emirates is becoming a significant global economic hub, and we believe our users will find our Dirham-pegged token to be a valuable and versatile addition,” Ardoino added.
Seyed Mohammad Alizadehfard, co-founder and Group CEO of Phoenix Group, also mentioned that the collaboration highlights the company’s commitment to innovation and excellence and dedication to providing financial solutions that fulfill customers’ requirements.
The press release further noted that cryptocurrency adoption in the UAE has surged significantly since 2022, driven by the establishment of the Asset Regulatory Authority.
Tether Deploys USDT on Aptos
Meanwhile, on August 19, Tether launched its USDT token on the Aptos layer-1 blockchain to enhance global access to digital assets and lower transaction costs.
By leveraging Aptos’ speed and scalability, Tether seeks to offer users remarkably low gas fees, amounting to just a fraction of a penny.