Tether, the company behind the $114 billion USDT token, is set to launch a new stablecoin pegged to the United Arab Emirates (UAE). This exciting development is a result of a collaboration with UAE-based tech giants Phoenix Group PLC and Green Acorn Investments Ltd. While a specific launch date has not been provided, Tether CEO Paolo Ardoino mentioned that the next step involves obtaining licensing from the Central Bank of the UAE, a process that could take a few months.
The upcoming Dirham-pegged stablecoin will be fully backed by liquid UAE-based reserves, adhering to Tether’s strict reserve standards to ensure stability and trust in its value. This new token is anticipated to revolutionize international trade and remittances, offering reduced transaction fees and serving as a hedge against currency fluctuations.
The UAE’s central bank has taken steps to regulate cryptocurrencies pegged to real assets, approving a plan in June to oversee and license stablecoin arrangements, particularly those backed by the UAE dirham. This move aligns with the UAE’s ambition to become a leader in the crypto space through its Financial Infrastructure Transformation Programme.
Tether’s expansion into the UAE market marks a significant milestone as the company broadens its services beyond the USDT flagship. Recently, Tether launched USDT on the Aptos blockchain to minimize gas fees to just a fraction of a penny. USDT is available on various blockchains, with Tron leading the way at $60.73 billion in net circulation, followed by Ethereum at $52.59 billion.
In summary, Tether’s introduction of a new stablecoin pegged to the UAE dirham has the potential to reshape the digital asset landscape, offering enhanced efficiency in international transactions and a safeguard against currency volatility. This development underscores the UAE’s commitment to fostering innovation in the crypto sector and positions Tether as a key player in the evolving financial market.