Tether has revealed its intention to launch a new stablecoin pegged to the United Arab Emirates dirham (AED). This novel cryptocurrency will be fully backed by liquid reserves managed within the United Arab Emirates, ensuring effective stability for users. The rise of stablecoins has revolutionized the crypto space, with millions of transactions and a significant impact on the digital economy. Tether, one of the leaders in this sector, has shown its ability to generate substantial revenue through its flagship product, USDT, which has reported earnings of $93.75 million.
TETHER DEPLOYS AN AED-BACKED SOLUTION
Tether has forged a strategic alliance with Phoenix Group PLC, a multi-billion dollar conglomerate based in the United Arab Emirates, and has the support of Green Acorn Investments. This collaboration aims to launch a stablecoin pegged to the United Arab Emirates dirham (AED). This new digital asset will join other options offered by Tether, such as USDT, EURT, CNHT, MXNT, XAUT and aUSDT. The arrival of this stablecoin will not only facilitate access to the AED, but will also modernize international trade and remittances, while reducing transaction costs.
The statement highlights that Tether’s new cryptocurrency will allow users to enjoy agile and economical access to the benefits offered by the dirham. In addition, this digital asset is expected to reduce transaction fees and help mitigate the effects of market fluctuations, playing an essential role within the financial ecosystem of the United Arab Emirates and beyond.
TETHER OPTIMIZES THE CRYPTOCURRENCY MARKET
With the intention of increasing liquidity in the cryptocurrency market, Tether’s move is aimed at offering more possibilities to traders. Important analysts believe that this advance could have a favorable impact on the global cryptocurrency ecosystem, attracting a greater number of investors and local entities. This launch is expected to not only benefit market operators, but also boost the value of Bitcoin, historically correlated with USDT’s performance in the market.
Furthermore, this Tether initiative responds to a favorable tax environment in the United Arab Emirates, where cryptocurrencies and blockchain technology find robust support. This commitment of the emirate to digital innovation is reflected in its legislation and in the philosophy of attracting companies related to decentralized computing and venture capital.
CREDIT TO REGULATION IN UAE
The United Arab Emirates’ commitment to creating adequate rules to regulate the use of digital assets is evident. The Dubai Financial Services Authority (DFSA) and the Abu Dhabi Global Market (ADGM) have pioneered the establishment of regulations that authorize and supervise digital asset companies. The establishment of these regulations is fundamental to ensuring investor confidence, thus promoting a safe and transparent business environment.
Recently, the Central Bank of the United Arab Emirates introduced new regulations related to payment token services, stating that these must be authorized and supervised by the Central Bank. If the launch of the AED-linked stablecoin were to materialize, this could open the door for other cryptocurrencies with similar proposals to seek regulation within this new framework.
ESTABLISHMENT OF A CRYPTOCURRENCY CENTER
As the United Arab Emirates establishes itself as a compelling destination for the cryptocurrency industry, interest has grown tremendously, with an expanding number of companies eager to set up shop in the region. Dubai, in particular, has emerged as a significant hub for blockchain-related activity, driving the organization of large-scale events and conferences focused on crypto innovations.
The growing network of businesses dedicated to blockchain technology and cryptocurrencies in the region has led to industry figures commenting on its rapid evolution. One prominent figure in the cryptocurrency space relayed his perspective on how Dubai has evolved into one of the most prominent cities for crypto activities, >“at the beginning, there were a few companies, but now there are thousands continuously making requests to register,” highlights the former CEO of one of the largest exchanges.
In the current context, the total supply of stablecoins has reached unprecedented figures, exceeding $160 billion, highlighting their increasing adoption and integration within the digital universe. This underscores the confidence in the use of these assets, which are vital for business operations, payments, and various applications in the financial realm.
