The biggest stablecoin issuer Tether has announced plans to launch a new stablecoin tied to the United Arab Emirates’s dirham (AED).
In a press release, on August 21, Tether announced that this new stablecoin will be launched in partnership with UAE-based Phoenix Group and Green Acorn Investments.
The collaboration is set to create a digital version of the dirham that is fully backed by liquid reserves held within the UAE.
“Adhering to Tether’s transparent and robust reserve standards, it ensures that every Dirham-pegged token is tied to the value of the AED, providing stability and confidence in its value,”
the press release noted.
Tether’s introduction of a dirham-pegged stablecoin into the UAE financial market aims to offer users a cost-effective way to access the benefits of the AED. According to the press release, this new stablecoin is designed to streamline international trade and remittances, reduce transaction fees, and hedge against currency fluctuations.
Paolo Ardoino, CEO of Tether, expressed his satisfaction with adding the dirham-pegged stablecoin, stating that the firm is “pleased” to expand its “range of stablecoin options.”
“The [UAE] is becoming a significant global economic hub, and we believe our users will find our Dirham-pegged token to be a valuable and versatile addition,”
Ardoino stated.
Seyed Mohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, expressed enthusiasm about the partnership. According to him, it shows the group’s “dedication to innovation and excellence.”
Alizadehfard also praised
“Abu Dhabi’s forward-thinking approach to blockchain and digital assets”.
He noted this made the region “an ideal starting point” for the enterpise.
Meanwhile, the UAE appears to be doubling down on its new-founded reputation as a crypo-firiendly hub. Abu Dhabi’s Financial Services Regulatory Authority (FSRA) recenlty initiated a public consultation on a new framework for fiat-referenced tokens (FRTs), a type of stablecoin. This move, prompted by stakeholder requests, includes operational restrictions for FRT issuers. The FSRA proposes defining FRTs as digital assets transferred and stored electronically using distributed ledger technology.
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