Tether introduces UAE Dirham-pegged stablecoin

Tether, the issuer of the largest stablecoin in the digital asset sector, announced on Wednesday that it is developing a new stablecoin pegged to the United Arab Emirates Dirham (AED) in partnership with UAE's tech giant Phoenix Group and Green Acorn Investments.

"We're pleased to announce this initiative to develop Tether's Dirham-pegged stablecoin, adding to our range of stablecoin options," said Paolo Ardoino, CEO of Tether.

Tether's new Dirham-pegged stablecoin will be one of the first stablecoins to seek regulatory approval under the UAE Central Bank's new Payment Token Services Regulation.

"We are thrilled to be working with Tether on bringing a UAE Dirham-pegged stablecoin to the market and are confident of its potential in transforming the digital economy for users across the region and beyond," said Seyedmohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group.

Tether said each Dirham-pegged token will be fully backed by real AED reserves held in the UAE. With the new stablecoin, the company aims to expand its array of stablecoin offerings, which already include USDT, EURT, CNHT, MXNT, XAUT, and aUSDT.

The Dirham-pegged stablecoin by Tether will offer a secure and efficient way to use the Dirham in the digital world, the firm noted. It also targets users who are looking to streamline international trade and remittances.

Tether expects the new product to help reduce transaction fees compared to traditional methods and provide a hedge against currency fluctuations.