Tether Plans to Launch Dirham-Backed Stablecoin in Partnership with Phoenix Group
Tether, the issuer of the world’s largest stablecoin, has announced its intention to launch a new token backed by the United Arab Emirates dirham (AED).
This ambitious project will be realized in partnership with the Abu Dhabi-listed crypto conglomerate, Phoenix Group. This initiative marks a new milestone in Tether’s expansion beyond stablecoins primarily pegged to the US dollar, which currently dominates the stablecoin market.
A Project Supported by a Solid Regulatory Framework
For this new project, Tether plans to submit a license application under the recently introduced regulation for payment token services by the Central Bank of the United Arab Emirates.
This regulation, announced in June, aims to regulate the use of payment tokens in the country. Obtaining this license could significantly enhance the credibility and adoption of the dirham-backed stablecoin, especially in an environment where Dubai and Abu Dhabi have already established themselves as major crypto hubs.
The Stake for Tether and the Stablecoin Sector
Developing a stablecoin pegged to the dirham could represent a strategic opportunity for Tether and the stablecoin market in general. While stablecoins not pegged to the US dollar struggle to gain traction, the robust regulatory framework and advanced crypto infrastructure of the United Arab Emirates could provide the necessary foundation for broader adoption of these alternative digital assets.
Furthermore, with the rise of blockchain technologies in the Gulf region, a stablecoin backed by a local currency could stimulate innovation and cross-border commerce.
By collaborating with Phoenix Group to develop a dirham-backed stablecoin, Tether continues to diversify its product portfolio while adapting to the local dynamics of global markets. This project could not only increase Tether’s influence in emerging economies but also encourage similar initiatives in regions where cryptocurrency adoption is growing. The future of this project will largely depend on obtaining the license from the Central Bank of the United Arab Emirates and how the market responds to this new stablecoin offering.
