Tether to launch dirham-pegged stablecoin in UAE
The following move aligns with the UAE’s ambition to become a global crypto hub, supported by progressive regulations and the adoption of cryptocurrency payments in sectors like real estate.
Tether, a leading cryptocurrency company, announced plans to introduce a new stablecoin pegged to the United Arab Emirates (UAE) dirham, aiming to offer an alternative to the US dollar. Stablecoins, digital tokens backed by traditional currencies, are commonly used for payments and trading on crypto exchanges. Tether’s CEO, Paolo Ardoino, highlighted the growing interest in holding dirhams outside the UAE, citing the currency’s stability and the nation’s robust economic position.
The UAE is positioning itself as a global hub for the crypto industry, rapidly enabling cryptocurrency payments in areas such as real estate and education. The country is also developing virtual asset regulations in Abu Dhabi and Dubai, fostering increased adoption and transaction volumes. Despite the growth, regulators have warned of risks associated with crypto assets, particularly concerns over stablecoin reserves and the potential for rapid outflows.
Tether, whose dollar-pegged stablecoin (USDT) dominates the market with $117 billion in circulation, plans to launch the dirham-backed stablecoin in partnership with Abu Dhabi-listed Phoenix Group and Green Acorn Investment. While a specific launch date has not been provided, the licensing process with the UAE Central Bank is expected to take several months.
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