Tether Teams Up With Phoenix Group And Green Acorn To Launch Dirham-Pegged Stablecoin
In Brief
Tether plans to introduce a new stablecoin pegged to the UAE Dirham released with Phoenix Group and Green Acorn Investments.
Issuer of the USD-pegged stablecoin USDT, Tether announced plans to introduce a new stablecoin pegged to the United Arab Emirates Dirham (AED). This new asset will be released in collaboration with the technology conglomerate Phoenix Group PLC and with backing from Green Acorn Investments. Additionally, the asset will seek licensing under the UAE Central Bank’s Payment Token Services Regulation.
Paolo Ardoino, CEO of Tether, announced in a written statement that the company is pleased to introduce this initiative, expanding its range of stablecoin options. He noted that the United Arab Emirates is emerging as an important global economic center and expressed confidence that users would find the Dirham-pegged token to be a useful and universal addition.
The new stablecoin will digitally represent the AED, with each token being completely backed by liquid reserves located in the UAE. This digital asset is anticipated to facilitate international trade and remittances, lower transaction costs, and offer protection against currency instabilities.
Since 2022, cryptocurrency utilization in the UAE has seen a notable growth, largely due to the creation of the Virtual Asset Regulatory Authority (VARA), the world’s first independent cryptocurrency regulator. This supportive regulatory framework has helped cities like Dubai and Abu Dhabi become prominent global centers for innovation in cryptocurrency assets and blockchain technology.
Tether Unveils aUSDT As New Addition To Its Stablecoin Products
It represents a firm owned by iFinex, which is registered in Hong Kong and also manages the cryptocurrency exchange Bitfinex. The platform supports a range of currencies, including the US dollar, Euros, Mexican peso, offshore Chinese yuan, and Gold, through Tether Tokens such as USDT, EURT, CNHT, MXNT, XAUT, as well as aUSDT. Each of these tokens is pegged at a one-to-one ratio with its respective fiat currency and is fully backed by Tether’s reserves.
Recently, Tether launched aUSDT, an over-collateralized on-chain token combined with XAUT, which integrates the stability of the US dollar with the inherent value of gold.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
