Tether Proposes UAE Dirham-Pegged Stablecoin Integration

By: Isha Das

Tether, a leading provider of stablecoins, has announced its plan to introduce a new stablecoin pegged to the United Arab Emirates Dirham (AED). This new addition will join Tether's current suite of stablecoins, which includes stablecoins pegged to the US Dollar (USDT), Euro (EURT), and other significant currencies.

The launch of the AED-pegged stablecoin is part of Tether's strategy to expand the adoption of its stablecoins globally. This new token aims to provide users with a secure and reliable digital currency that reflects the value of the UAE Dirham, enhancing the accessibility and flexibility of financial transactions within the region and beyond. According to the announcement, Tether is collaborating with Phoenix Group to facilitate the development and deployment of this new stablecoin.

An integral part of Tether's plan includes seeking licensing under the U.A.E. Central Bank's Payment Token Services Regulation. This regulatory framework aims to ensure that all digital currencies and stablecoins operating within the UAE meet specific standards and security requirements. By adhering to these regulations, Tether aims to build trust and compliance within the local market, fostering a robust digital economy in the UAE.

The integration of the AED-pegged stablecoin is anticipated to have significant implications for crypto users and businesses in the region. The stablecoin can enhance transaction efficiency, reduce costs, and provide a stable alternative in a market often characterized by volatility. It can also play a pivotal role in remittances, cross-border payments, and other financial activities. For more information on Tether's current stablecoins and regulatory endeavors, visit Tether's official website.