Tether Plans Dirham-Pegged Stablecoin Launch For UAE Expansion

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As a seasoned analyst with years of experience navigating the volatile crypto market, I find Tether’s latest move to launch a UAE Dirham-pegged stablecoin quite intriguing and strategic. With my background in understanding the nuances of global financial markets and blockchain technology, it is clear that this expansion strategy by Tether could potentially redefine the stability and accessibility of digital assets within the Middle East.

As an analyst, I’ve noticed that Tether, the prominent stablecoin issuer, has made waves recently with their latest announcement. In a recent blog post, they unveiled their intention to create and launch a stablecoin pegged to the UAE Dirham. This strategic move signifies Tether’s commitment to expanding its presence in the Middle East, taking advantage of the region’s burgeoning interest in blockchain technology.

Tether Plans To Launch Dirham-Pegged Stablecoin

Tether is making a major move in its worldwide growth plan. They aim to launch a stablecoin tied to the United Arab Emirates Dirham (AED), catching the interest of crypto investors. This new stablecoin will be backed by liquid assets within the UAE, providing stability and trust for users.

According to the stablecoin issuer, they plan to collaborate with the UAE’s leading tech company, Phoenix Group, to develop their coin. This project will be supported by Green Acord investments. The firm is optimistic about establishing a fresh benchmark in the region with their innovative products.

Simultaneously, CEO Paolo Ardoino voiced his optimism. He stated that the UAE’s role as a global economic center provides a massive opportunity for his company to provide a secure and streamlined method for transacting in Dirham. Furthermore, the company asserted that their stablecoin would meet diverse requirements, such as cross-border payments, trading, and diversifying digital assets.

The initiative aligns with the company’s dedication to pioneer in the field, following the UAE Central Bank’s recent introduction of Payment Token Services Regulation. This regulatory structure coincides with the UAE’s supportive attitude towards blockchain technology and digital assets. Furthermore, it has significantly contributed to cities like Dubai and Abu Dhabi becoming global centers for crypto innovation.

To put things in perspective, it’s worth noting that the current market value of stablecoins is approximately $150 billion. Out of this massive figure, Tether’s USDT holds a significant portion, around $115 billion worldwide. With predictions suggesting that the industry could reach an astounding $2.8 trillion by 2028, Tether’s entry into the UAE market places it at the forefront of this rapidly expanding sector.

Strategic Partnership Of The Stablecoin Issuer

The alliance between Tether and Phoenix Group underscores their shared dedication to pioneering solutions and top-tier performance. Seyedmohammad Alizadehfard, co-founder and CEO of Phoenix Group, expresses optimism about the prospects of the Dhiram-backed stablecoin.

In the meantime, he pointed out that Abu Dhabi’s supportive stance towards blockchain technology and digital assets makes it a perfect starting point for introducing this groundbreaking product.

Furthermore, the announcement is consistent with the stablecoin issuer’s latest action to debut its dollar-backed USDT on the innovative Aptos Network. This step underscores the company’s faith in Aptos’ robust ecosystem, renowned for its fast and efficient scaling capabilities.

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2024-08-21 16:38