Tether, the world’s largest stablecoin provider, is set to further its global dominance by launching a new stablecoin pegged to the United Arab Emirates dirham (AED). The move, a strategic partnership with UAE-based Phoenix Group PLC and Green Acorn Investments Ltd, aims to revolutionize the way international trade and remittances are conducted in the region. This expansion marks a significant milestone for Tether as it continues to innovate within the digital asset space.
The collaboration between Tether, Phoenix Group, and Green Acorn Investments is designed to create a fully-backed digital representation of the Dirham. This Tether dirham stablecoin is expected to offer a cost-effective and efficient solution for businesses and individuals looking to leverage the stability of the AED in their financial transactions.
Trade and Remittances with the Tether Dirham Stablecoin
The introduction of the Tether dirham stablecoin comes at a time when the UAE is experiencing a surge in cryptocurrency adoption, driven by regulatory advancements and a growing interest in digital assets. According to the press release shared with Cointelegraph, the new stablecoin will be “fully backed by liquid UAE-based reserves,” ensuring its stability and reliability in the market.
Paolo Ardoino, CEO of Tether, expressed his enthusiasm for the launch, stating, “We are pleased to add the Dirham-pegged stablecoin to our range of stablecoin options. This new product will provide users with a valuable tool for accessing the benefits of the AED, particularly in the context of international trade and remittances.”
The Tether dirham stablecoin is poised to streamline cross-border transactions, reduce transaction fees, and offer a hedge against currency fluctuations. By leveraging the stability of the AED, the stablecoin is expected to become an essential tool for businesses and individuals engaged in international trade, particularly in regions where the Dirham is a preferred currency.
Phoenix Group’s Role in the Tether Dirham Stablecoin Launch
Phoenix Group PLC, a multibillion-dollar tech conglomerate based in Abu Dhabi, plays a crucial role in the development and launch of the Tether dirham stablecoin. The company’s extensive experience in the financial technology sector positions it as an ideal partner for Tether in this groundbreaking initiative.
Seyed Mohammad Alizadehfard, co-founder and Group CEO of Phoenix Group, highlighted the significance of the partnership, stating, “Our collaboration with Tether reflects our dedication to providing innovative financial solutions to our customers. The Tether dirham stablecoin will be a game-changer in the UAE’s financial landscape, offering businesses and individuals a secure and efficient means of transacting in AED.”
The partnership with Phoenix Group is not just about launching a new stablecoin; it’s about laying the foundation for a more integrated and efficient financial system in the UAE. The Tether dirham stablecoin is expected to enhance the country’s digital finance infrastructure, making it easier for businesses to operate and for individuals to manage their finances.
A Strategic Partnership
Green Acorn Investments Ltd, a UAE-based investment firm, also plays a pivotal role in the launch of the Tether dirham stablecoin. The firm’s expertise in managing and deploying financial assets within the region is instrumental in ensuring the stablecoin’s success.
By partnering with Green Acorn Investments, Tether gains access to valuable insights and resources that will help navigate the complexities of the UAE’s financial landscape. This collaboration is expected to further cement the Tether dirham stablecoin as a key player in the region’s digital economy.
UAE’s Growing Cryptocurrency Adoption
The launch of the Tether dirham stablecoin is set against the backdrop of rapid cryptocurrency adoption in the UAE. Since 2022, the establishment of the Virtual Asset Regulatory Authority (VARA) has provided a robust regulatory framework that has encouraged the growth of digital assets in the country.
According to industry experts, the Tether dirham stablecoin could play a crucial role in accelerating the adoption of cryptocurrencies in the UAE. By providing a stable and reliable digital representation of the AED, the stablecoin will likely attract a broad range of users, from retail investors to large enterprises.
Expanding Tether’s Global Reach
In addition to the Tether dirham stablecoin, Tether has also expanded its reach by launching USDT on the layer-1 Aptos blockchain. This integration is designed to improve global digital currency access while reducing transaction costs. By leveraging Aptos’ speed and scalability, Tether aims to provide the blockchain’s users with “extremely low gas fees, costing only a fraction of a penny.”
The Aptos integration is part of Tether’s broader strategy to expand its global footprint and provide users with a wide range of stablecoin options. As Tether continues to innovate and introduce new products, it remains at the forefront of the digital asset industry, driving the adoption of cryptocurrencies worldwide.
The launch of the Tether dirham stablecoin marks a significant step forward in the evolution of the UAE’s digital finance landscape. By providing a stable, reliable, and efficient means of transacting in AED, the stablecoin is expected to play a pivotal role in international trade, remittances, and the broader adoption of cryptocurrencies in the region.
As Tether continues to expand its product offerings and global reach, the company remains committed to providing innovative financial solutions that meet the evolving needs of its users. The Tether dirham stablecoin is just the latest example of how Tether is shaping the future of digital finance.
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