Tether, the largest issuer of stablecoins, has taken a significant step by announcing the launch of a new stablecoin pegged to the UAE dirham (AED). This development is part of a partnership with Phoenix Group and Green Investments, marking a key milestone for the company.
In a press release shared on the official Tether website, the company expressed its excitement about this new initiative, stating,
“We’re pleased to announce this initiative to develop Tether’s Dirham-pegged stablecoin, adding to our range of stablecoin options.”
The introduction of Tether's AED-pegged stablecoin is expected to provide crypto users with a seamless and cost-effective way to access and utilize the UAE dirham. This move highlights Tether's strategic entry into the UAE market, underscoring the growing significance of the UAE's crypto industry on the global stage.
The UAE has recently made strides in crypto regulation, with a court ruling that cryptocurrencies are legal tender and can be used to pay salaries. This regulatory environment has turned the UAE into a burgeoning crypto hub, attracting a growing user base.
Tether's Dirham-pegged stablecoin is anticipated to streamline international trade, reduce transaction costs, and facilitate remittances, as emphasized in their press release. The UAE's crypto market has expanded significantly since the establishment of the Virtual Asset Recovery Authority in 2022, providing a favorable environment for crypto firms like Tether to thrive.
This move is part of Tether's broader strategy to expand its global market presence and tap into the rising demand for stablecoins. The stablecoin market cap has seen steady growth this year, increasing from $130 billion to $168 billion year-to-date, according to data from DefiLlama.
The growing demand for USDT further highlights the crucial role stablecoins play in the broader crypto market.
