Tether, the issuer of the widely used USDT stablecoin, has announced plans to develop a new stablecoin pegged to the United Arab Emirates Dirham (AED). Tether CEO Paolo Ardoino stated that the UAE is a “significant global economic hub,” and the new stablecoin aims to provide businesses and individuals with a secure and efficient means of transacting in AED. This includes facilitating cross-border payments, trading, and asset diversification.
Key Highlights:
Tether has stated that each token will be fully backed by liquid UAE-based reserves, adhering to its existing standards, which have previously faced scrutiny. The company has yet to receive an audit from one of the Big Four accounting firms, which Ardoino has identified as a “top priority.”The global stablecoin market is currently valued at approximately $150 billion, with projections suggesting potential growth to $2.8 trillion by 2028. Tether's USDT stablecoin, the largest by market share, currently boasts a reported market cap of over $117 billion.Read more at Decrypt.
- In its announcement, Tether outlined plans to collaborate with UAE-based tech conglomerate Phoenix Group PLC and Green Acorn Investments Ltd. on the launch of the as-yet-unnamed stablecoin. Ardoino emphasized that the new digital asset will allow users to access the benefits of the AED while leveraging blockchain technology, potentially streamlining international trade and remittances, reducing transaction fees, and providing a hedge against currency fluctuations.
- The initiative aligns with the UAE's ongoing efforts to position itself as a hub for cryptocurrency and blockchain innovation. Since 2022, the country has witnessed a surge in crypto investment, partly due to the establishment of the Virtual Asset Regulatory Authority in Dubai. In 2023, Coinbase CEO Brian Armstrong praised the UAE’s “forward-thinking” approach to digital assets, while Binance identified the region as a “focal point” for the crypto industry.Phoenix Group's Co-Founder and Group CEO, Seyedmohammad Alizadehfard, expressed optimism about the collaboration, highlighting Abu Dhabi's progressive stance towards blockchain and digital assets.
