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Tether has revealed plans to create a stablecoin pegged to the United Arab Emirates Dirham (AED). The project is a collaboration with UAE tech company Phoenix Group PLC and Green Acorn Investments Ltd.
The new stablecoin will join Tether's existing lineup, which includes USDt, EURT, CNHT, MXNT, XAUT, and aUSDT. Tether intends to seek licensing under the UAE Central Bank's Payment Token Services Regulation.
According to Tether, the Dirham-pegged token will be backed by liquid UAE-based reserves, with each token representing the value of one AED.
Paolo Ardoino, CEO of Tether, stated: "We're pleased to announce this initiative to develop Tether's Dirham-pegged stablecoin, adding to our range of stablecoin options. The United Arab Emirates 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."
The global stablecoin market is currently valued at $150 billion. Cryptocurrency usage in the UAE has increased following the establishment of the Virtual Asset Regulatory Authority in 2022.
Seyedmohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, commented: "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. This collaboration with Tether not only underscores our commitment to innovation and excellence but also reflects our dedication to providing financial solutions that meet the needs of our customers."
Tether has not announced a launch date for the new stablecoin.
