Tether, a leading cryptocurrency company, has announced plans to launch a new stablecoin pegged to the United Arab Emirates (UAE) dirham. This initiative aims to tap into the growing demand for the UAE currency and provide an alternative to the U.S dollar.
Tether’s CEO, Paolo Ardoino, stated that their goal is to create more choices for using different currencies besides the U.S. dollar. He mentioned that he thinks the dirham (the currency of the UAE) could become popular as global trade changes.
He also noted that many people are interested in holding dirhams outside of the UAE because they see the country and its finances as stable and safe.
Ardoino emphasized that the dirham-pegged stablecoin is designed to facilitate secure transactions, streamline international trade, and reduce transaction fees compared to traditional methods.
The new stablecoin will be developed in partnership with Abu Dhabi-based Phoenix Group and Green Acorn Investments. This is significant to Tether’s entry into the UAE market as it seeks regulatory approval under the UAE Central Bank’s new Payment Token Services Regulation.
Tether products
Tether offers a variety of stablecoins, each designed to maintain a stable value by being pegged to traditional currencies. The most well-known product is USDT, which is pegged to the U.S. dollar and was launched in 2014.
This stablecoin has become a fundamental part of the cryptocurrency market, widely used for trading and as a medium of exchange.
In 2022, Tether expanded its offerings by launching EURT, a stablecoin pegged to the euro, and CNHT, which is backed by the Chinese yuan. Later that year, Tether introduced MXNT, a stablecoin pegged to the Mexican peso. In June 2024, Tether launched Alloy, a digital asset backed by Swiss-stored gold.
Tether’s introduction of a stablecoin tied to the dirham is part of its plan to expand its services and meet the rising demand for stablecoins in different parts of the world. The global stablecoin market is growing quickly, currently worth about $150 billion, and could reach $2.8 trillion by 2028.
The UAE’s supportive regulations and the stability of its currency make this dirham-linked stablecoin a good option for businesses and people who want to do digital transactions.
A couple of months back, Tether unveiled Allow, a novel digital asset underpinned by Tether Gold. Concurrently, they ceased the creation of USDT on Algorand and EOS. Merely two days ago, the stablecoin provider expanded its presence by launching on the Aptos Network.
