Tether to Launch UAE Dirham-Pegged Stablecoin, Expanding Global Portfolio

• Tether collaborates with Phoenix Group and Acorn Investments to launch a UAE Dirham-pegged stablecoin, boosting its product portfolio.
• The UAE’s regulatory environment continues to attract significant investments, positioning the country as a leader in digital asset adoption.
• Experts predict the stablecoin market, valued at $169 billion today, could reach $2.8 trillion by 2028, highlighting its growing significance.

Tether, one of the largest holders of Bitcoin and a leader in real-world asset (RWA) tokenization, has announced plans to develop a new stablecoin pegged to the United Arab Emirates Dirham (AED). This initiative is in collaboration with Phoenix Group PLC and Acorn Investments Ltd, signaling a significant step in Tether’s expansion strategy.

The AED-pegged stablecoin is expected to launch soon, though the specific blockchain platform for its deployment remains undisclosed. Speculation suggests Ethereum may be the network of choice for this launch.

Tether’s Growing Stablecoin Portfolio

With the addition of the AED-pegged stablecoin, Tether’s diverse product lineup now includes USDt, EURT, CNHT, MXNT, XAUT, and aUSDT. This move highlights Tether’s ongoing commitment to providing a range of digital assets for global transactions. According to Paolo Ardoino, Tether’s CEO, the new stablecoin is set to become a crucial tool for businesses and individuals in the UAE. It will facilitate secure, efficient transactions in the local currency, offering an alternative for cross-border payments and digital asset diversification.

UAE’s Pioneering Role in Digital Asset Adoption

The United Arab Emirates is one of the most important centres for digital assets and blockchain. This country has made a lot of progress particularly in Dubai, and it has attracted huge investments both local and international. The Dubai Financial Services Authority (DFSA) set regulations that were straightforward thereby creating an enabling environment for innovation on digital assets. The partnership with Tether shows how committed they are not only to remaining at the top but also growing further in digital economy leadership positions as UAE. 

Another thing to note is that while China and Europe are already deep into their Central Bank Digital Currencies (CBDCs) development journey; our central bank   CBUAE is still researching actively around this area so that we can compete globally too.

Stablecoins’ Increasing Significance within Crypto Markets

Stablecoins have now become very integral to the crypto ecosystem which accounts for about $169 billion market capitalization with a volume of $52 billion being traded per day. While this dominance remains true especially considering Tether’s USDT as well as Circle’s USDC and Dai (DAI); new comers such First Digital USD (FDUSD), Ethena USDe (USDE) among others challenge this status quo.

 As more people adopt cryptocurrencies, it is expected by experts from different industries that stablecoin industry might grow upto $2,800 billion worth come 2028;