At the TON Gateway event in Dubai, Tether’s Senior Strategic Partnership Manager, Alessandro Giori, revealed that the company plans to issue a stablecoin pegged to the United Arab Emirates Dirham (AED) on the TON blockchain.
This initiative is part of Tether’s strategy to expand into the Middle East by launching a digital currency tied to the UAE’s national currency.
The new AED-pegged stablecoin aims to streamline financial transactions in the region, offering a stable digital currency option that enhances accessibility and reliability in digital finance.
Tether has already launched a US dollar-pegged stablecoin on the TON Blockchain. By introducing the AED-pegged stablecoin to this platform, known for its scalability, efficiency, and large community through Telegram, Tether aims to enhance the user experience.
This integration is designed to facilitate smoother transactions and build greater trust in digital currencies.
This development is part of Tether’s broader strategy to diversify its stablecoin portfolio, catering to varying market needs with digital currencies pegged to multiple fiat currencies.
Tether (USDT) remains the dominant player in the stablecoin market, typically accounting for around 60-70% of the total market capitalization.
Tether’s extensive use in trading pairs across numerous exchanges, its established reputation, and its asset-backed reserves contribute to its leading position. This dominance underscores Tether’s essential role in providing liquidity and facilitating transactions within the cryptocurrency ecosystem.
The UAE is at the forefront of the digital assets movement, establishing itself as a global leader in blockchain and cryptocurrency innovation. The government has implemented a strong regulatory framework to foster the growth of the digital economy while ensuring investor protection.
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Key initiatives include the establishment of the Dubai Multi Commodities Centre (DMCC) Crypto Centre, which supports crypto businesses, and the Abu Dhabi Global Market (ADGM), which has its own regulatory framework for digital assets.
The Central Bank of the UAE has introduced guidelines for cryptocurrencies and is actively exploring the potential of a central bank digital currency (CBDC). Additionally, the UAE hosts various blockchain conferences and events, attracting international talent and investment.
