Tether, the largest stablecoin provider in the digital asset industry, has announced plans to launch a new stablecoin pegged to the United Arab Emirates dirham (AED).
According to the press release shared with Cointelegraph, the new stablecoin will launch in collaboration with UAE-based Phoenix Group and Green Acorn Investments.
The collaboration aims to establish a digital representation of the dirham currency, which is “fully backed by liquid UAE-based reserves.”
“Adhering to Tether’s transparent and robust reserve standards, it ensures that every Dirham-pegged token is tied to the value of the AED, providing stability and confidence in its value.”
Related: Tether expands USDT to Aptos blockchain for lower fees
Tether UAE market expansion
Tether’s expansion into the UAE financial market with its new dirham-pegged stablecoin is expected to provide users with a cost-effective method for “accessing the benefits of the AED.”
The press release states that the new stablecoin will “streamline international trade and remittances” while reducing transaction fees and offering a hedge against currency fluctuations.
Paolo Ardoino, the CEO of Tether, explained that the firm was “pleased” to add the dirham-pegged stablecoin to its “range of stablecoin options.”
“The [UAE] 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.”
Related: Tether mints another $1B USDT on Tron network
Phoenix Group collaboration
In partnership with Phoenix Group — a multibillion-dollar tech conglomerate based in Abu Dhabi — Tether aims to provide businesses and individuals with “an essential tool” for transacting.
According to the press release, cryptocurrency use in the UAE has grown exponentially since 2022, “driven by the establishment of the Virtual Asset Regulatory Authority.”
Seyed Mohammad Alizadehfard, co-founder and Group CEO of Phoenix Group, stated that the partnership “reflects” the firm’s “dedication to providing financial solutions” to its customers.
Related: Tether crypto exchanges balance hits record high as Treasury prints $1B USDT
Tether expansion to Aptos blockchain
On Aug. 19, Tether launched its Tether (USDT) token on the layer-1 Aptos blockchain to improve global digital currency access and use while reducing transaction costs.
Through Aptos’ speed and scalability, Tether aims to provide the blockchain’s users with “extremely low gas fees, costing only a fraction of a penny.”
With this integration, transaction fees on Aptos using USDT will become “economically viable” for many use cases, including large-scale enterprise operations and microtransactions.
Magazine: 11 critical moments in Ethereum’s history that made it the No.2 blockchain