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Tether — the company behind leading stablecoin USDT — plans to launch a stablecoin tracking the price of the United Arab Emirates dirham.
According to an Aug. 21 announcement, Tether’s upcoming dirham stablecoin is the result of a collaboration with crypto services company Phoenix Group and investment firm Green Acorn Investments. The firm promises that its newest stablecoin will “lead the way in seeking licensing under the UAE Central Bank’s recently announced Payment Token Services Regulation.”
Tether’s growing stablecoin family
The new UAE dirham-pegged stablecoin will join Tether’s list of products. This includes USD stablecoin USDT, euro stablecoin EURT, Chinese Yuan-pegged CNHT, Mexican peso-pegged MXNT, gold-backed XAUT and gold-backed USD stablecoin aUSDT.
Per the announcement, Tether’s new stablecoin will be fully backed by liquid UAE-based reserves. The company explains that it hopes to bring the advantages of cheap and seamless remittances seen with stablecoins to this currency.
“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,” Tether CEO Paolo Ardoino said. “Tether’s Dirham-pegged stablecoin is set to become an essential tool for businesses and individuals looking for a secure and efficient means of transacting in the United Arab Emirates Dirham whether for cross-border payments, trading, or simply diversifying one’s digital assets.”
The company claims that while the current stablecoin market is valued at $150 billion — with USDT accounting for $115 billion of that — projections see this industry reach $2.8 trillion by 2028. Tether also highlights that crypto usage in the United Arab Emiratess is seeing significant growth since 2022, when local authorities established the Virtual Asset Regulatory Authority. Seyedmohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group said:
“Abu Dhabi’s progressive stance towards blockchain, digital assets and innovation makes it the perfect launchpad.”
The announcement follows Tether’s recent expansion of its business model by investing surplus funds into AI and emerging technologies such as brain-computer interfaces.
