Last Updated on August 31, 2024 by Nisar
Tether Releases Dirham-Pegged Cryptocurrency
The well-known international digital asset firm Tether, best known for its stablecoin USDT, has announced plans to launch a new stablecoin based on the United Arab Emirates Dirham. Tether will be collaborating on this project with Phoenix Group, a significant tech company based in the United Arab Emirates, with extra support from Green Acorn Investments.
The Launching Role of Phoenix Group
In an exclusive interview with Cryptopolitan, Phoenix Group CEO and co-founder Munaf Ali provided more details about the company’s engagement. Getting the stablecoin the required regulatory permissions will be mostly up to Phoenix Group. Ali emphasised that the business is closely collaborating with UAE authorities to make sure all legal criteria are fulfilled. Phoenix Group intends to apply for an operating licence from the Central Bank of the United Arab Emirates (UAE), as they have recently imposed regulations on payment token services.
The Stake of Phoenix Group and Regulatory Compliance
Ali underlined Phoenix Group’s and Green Acorn Investments’ substantial investment in this project. Phoenix Group is positioned as a reliable partner for Tether by virtue of being the only crypto blockchain player with MENA listing on the UAE’s stock market, ADX. Launched in 2025, the stablecoin will have its stability and dependability guaranteed by being entirely backed by liquid reserves located in the United Arab Emirates.
Anticipated Liquidity and Effect on Market
In response to queries regarding liquidity, Ali predicted that there will be more than 500 million AED in liquidity for the new AED stablecoin. The market capitalisation of USDT is presently $120 billion, and in the next two years, the AED stablecoin is expected to represent 10–20% of this amount.
Effects Outside of the UAE
According to Tether, the Dirham-pegged stablecoin would provide consumers with an affordable and transparent way to take advantage of the AED’s advantages. Through the use of blockchain technology, the stablecoin hopes to increase efficiency and spread its advantages beyond of the United Arab Emirates.
