World’s largest stablecoin issuer, Tether is set to launch a new stablecoin that’ll be pegged to the United Arab Emirates Dirham (AED). The firm made the disclosure on Wednesday via a post on its official website.Â
According to the announcement, Tether will collaborate with a multinational company in the UAE identified as the Phoenix Group PLC. More so, the initiative will as well enjoy the support of Green Acorn Investments Ltd.
It is worth mentioning that the proposed Dirham-pegged stablecoin will add to the Tether slate of virtual assets that include USDT, EURT, CNHT, MXNT, XAUT, and aUSDT. Meanwhile, Tether as part of its compliance with local and international regulations will apply for a license before launching the stablecoin.
As revealed, the firm will pursue regulatory approval through the Payment Token Services Regulation of the UAE Central Bank. Furthermore, in the statement, Tether revealed that the stablecoin will be fully backed by liquid UAE-based reserves.
In addition, the stablecoin issuer promises to ensure that the token maintains the value of the AED and provides more stability that’ll gain users’ trust. Tether further explained how the new stablecoin will offer users a seamless and cheap way of exploring the benefits of the AED by leveraging the efficiency of blockchain technology.
Similarly, the firm also discussed how the UAE Dirham-pegged stablecoin will help streamline international trade and remittances. Also, Tether revealed that it will be effective in reducing transaction fees and offer holders a hedge against currency fluctuations.
Paolo Ardoino’s Opinion On The New Token
The CEO of Tether, Paolo Ardoino provided more insight into the relevance of the new stablecoin. Ardoino illustrated how the United Arab Emirates is growing to be a relevant global economic hub.
Further, the executive expressed his confidence in how the Dirham-pegged stablecoin will be a valuable and versatile addition. Lastly, the CEO said the token will become an essential tool for businesses and individuals in the UAE.
Side Note On Tether
According to Coinmarketcap, the stablecoin market is worth more than $150 billion with Tether’s USDT contributing more than $115 billion to the figures. By that, the firm has emerged as a force to reckon with and it also placed it at the heart of a fast-growing ecosystem.Â
As per market projections, the stablecoin industry is tipped to grow and attain $2.8 trillion by 2028. However, Tether due to its dominance in the stablecoin space will be one of the major drivers of this growth.
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