Tether Launches UAE Dirham-Pegged Stablecoin in Collaboration with Phoenix Group and Green Acorn Investments

In a significant development, Tether has introduced a new stablecoin pegged to the United Arab Emirates Dirham (AED) in partnership with Phoenix Group and Green Acorn Investments. This innovative financial product is designed to streamline local and international transactions in the UAE, providing a secure and reliable means of exchange.

The stablecoin, backed by liquid reserves held within the United Arab Emirates, ensures that each token accurately represents the value of the AED. With a secure value tied to the official currency of the UAE, users can trade, send, and receive the stablecoin with confidence.

The launch of the Dirham-pegged stablecoin is particularly significant in light of the UAE Central Bank’s (CBUAE) announcement to complete the implementation of the Payment Token Regulatory System (PTRS) by June 2025. The PTRS provides a regulatory framework for stablecoin-related activities within the country, with financial zones like DIFC and ADGM being exempt from the regulations. However, entities licensed by the Virtual Asset Regulatory Authority (VARA) will still need to comply with this new regulation.

Abu Dhabi’s leadership in blockchain and digital assets makes it an ideal platform for this innovative financial product. As Alizadehfard stated, the launch of the Dirham-pegged stablecoin is a testament to the UAE’s commitment to promoting fintech innovation and blockchain adoption. The country’s favorable regulatory system, strategic geographical location, and robust financial infrastructure make it a valuable option for businesses and investors.

The new Dirham-pegged stablecoin is expected to play a starring role in driving cross-border transactions, reducing costs, and increasing efficiency. Its potential to streamline international trade and remittance flows is likely to attract significant attention from businesses, investors, and individuals.

As the digital landscape continues to evolve, it is clear that the UAE is leading the way in innovation. The country’s efforts to embrace new technology and drive growth in the financial sector have been demonstrated by the launch of the Dirham-pegged stablecoin, which is a strong partnership between Tether, Phoenix Group, and Green Acorn Investments.

Want to learn more about the future of digital payments and transactions in the region? Check out this article on CoinSeeks.com: Stablecoins in the UAE: The Future of Digital Payments

With the country’s continued innovation and fintech boom, the Dirham-pegged stablecoin is poised to become a key player in shaping the future of digital payments and transactions in the region.