Tether Will Launch New Stablecoins Pegged At Dirham

USDT publisher, Tether, set a stablecoin to dirham. (Photo; Doc. Remitano)

JAKARTA - Tether, a leading global stablecoin publisher, plans to launch a new stablecoin set at 1:1 with the currency value of the United Arab Emirates (AED) Dirham. This product will be fully supported by UAE-based liquid reserves, in accordance with company standards to ensure stability and confidence in its value.

According to the announcement released on Wednesday, August 21, 2024, the new stablecoin is still in its early development stages. Tether is working with the Phoenix Group PLC, a leading technology conglomerate in the Arab region, and Green Acorn Investments Ltd, to introduce this stablecoin to market.

These three companies work together to ensure that the stablecoin pegged on Dirham can maintain its stability and remain on par with its reserve assets. Seyedmohammad Alizadehfard, co-founder of the Phoenix Group, believes that this digital asset will have a significant impact on the crypto market in the UAE.

"We are excited to work with Tether in presenting stablecoins pegged at the UAE Dirham and believe in its potential to change the digital economy for users across the region and outside the UAE," said Alizadehnard.

Once launched, this stablecoin will be an addition to other Tether stablecoin products, such as those pegged at US dollars (USDT), euros (EURT), Mexican pesos (MXNT), Chinese yuan (CNHT), and Tether Gold (XAUt) whose value follows the price of physical gold.

Tether claims that this new stablecoin, although pegged 1:1 on Dirham, will provide users with the benefits of blockchain technology. By bringing transactions to blockchain, this stablecoin aims to reduce transaction costs and increase speed and transparency in the payment process.

Facilitate International Trade And Money Delivery

Tether CEO Paolo Ardoino said that stablecoins pegged on Dirhams would provide more reliable and cost-effective solutions for businesses and individuals in managing financial transactions, especially for cross-border payments, trading, and asset diversification.

The introduction of digital assets is also expected to facilitate international trade and remittances, as well as provide protection against currency fluctuations, which are the main challenges for companies and investors operating in the UAE.

Stablecoins pegged at the Dirham will be regulated under the new regulations announced by the UAE Central Bank regarding Payment Token Services.

Ardoino insists that the launch of this stablecoin in the UAE will be an important addition to customers in the region.

"The United Arab Emirates is developing into the center of the global economy, and we believe that this token pegged on the Dirhams will be a valuable and versatile addition to our users," said Ardoino.