Stablecoin issuer Tether has announced that its United Arab Emirates dirham-pegged stablecoin will be launched on The Open Network (TON) blockchain.
At the TON Gateway event held in Dubai, Alessandro Giori, Tether’s senior strategic partnership manager, announced that its dirham stablecoins, announced earlier this year, will be launched on the TON blockchain.
Tether’s senior strategic partnership manager, Alessandro Giori, at the TON Gateway event in Dubai. Source: The Open Network
On Aug. 21, Tether announced that it is working with the UAE’s Phoenix Group and Green Acorn Investments to launch a dirham-backed stablecoin. The collaboration aims to establish a digital representation of UAE dirhams, fully backed by liquid UAE-based reserves.
In a press release, Tether said that it would ensure that every dirham-pegged token is “tied to the value of the AED” and will provide stability and confidence to its value.
USDT’s growth on TON
On April 19, at the Token2049 event in Dubai, Tether CEO Paolo Ardoino, Telegram founder Pavel Durov and The Open Platform CEO Andrew Rogozov announced that USDt (USDT) would go live on the TON blockchain.
Since its launch on the blockchain, Giori said at the TON Gateway event that TON is the fastest blockchain to ever reach 1 billion USDT. The executive told the audience that USDT on the TON blockchain reached the milestone within six months of its launch.
TON is the fastest chain to reach 1 billion USDT. Source: TON
Giori said there are 160,000 USDT transactions on TON per day and 7.6 million wallets using USDT on the TON blockchain. He added that there are more than 100 crypto platforms that have integrated USDT based on the TON blockchain.
Giori also announced that USDT on TON will also be available on the digital asset platform Fireblocks. “This means that all the companies that are using Fireblocks are now entering the ecosystem, and more and more people are using USDT on TON,” Giori added.
Related: Tether posts $2.5B in Q3 profits, with 2024 earnings reaching $7.7B
UAE approves licensing system for stablecoins
The new development follows the UAE’s decision to approve a licensing framework for stablecoins. On June 3, the UAE’s leaders approved issuing regulations for overseeing and licensing stablecoins. The new regulations would give regulatory clarity on the issuance, licensing and supervision of dirham-backed payment tokens.
On Oct. 18, a UAE-based stablecoin issuer called AED Stablecoin managed to get an in-principle approval from the UAE’s central bank. If the company gets full approval, it can deliver a regulated dirham-pegged stablecoin in the UAE.
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