Tether, the world’s largest stablecoin issuer, is set to introduce a new digital asset pegged to the United Arab Emirates dirham (AED), marking a significant expansion of its product offerings in a rapidly growing market. This move is part of Tether’s broader strategy to diversify its stablecoin portfolio, which already includes tokens pegged to the U.S. dollar, euro, and several other currencies.
The new stablecoin, known as AEDT, is designed to meet the increasing demand for Gulf currency-based digital assets. It will be fully backed by reserves held in the UAE, ensuring its value is directly tied to the dirham. This initiative aligns with the UAE’s push to become a global hub for cryptocurrency and blockchain innovation, supported by the region’s favorable regulatory environment and the establishment of the Virtual Asset Regulatory Authority, the world’s first independent crypto regulator.
Tether’s partnership with the Abu Dhabi-based Phoenix Group PLC and Green Acorn Investments Ltd. underscores the strategic importance of this launch. The collaboration is expected to facilitate international trade, reduce transaction fees, and offer a reliable hedge against currency fluctuations, particularly benefiting businesses and individuals involved in cross-border transactions.
The launch of AEDT comes at a time when the global stablecoin market is witnessing exponential growth, with projections suggesting it could expand to $2.8 trillion by 2028. In this context, Tether’s expansion into the Middle East could provide it with a critical foothold in a region that is increasingly embracing digital assets.
Tether’s CEO, Paolo Ardoino, emphasized that the dirham-pegged stablecoin is poised to become an essential tool for the UAE’s burgeoning digital economy, offering a secure and efficient means of transacting in the local currency. As the UAE continues to position itself as a leader in the digital finance sector, the introduction of AEDT could play a pivotal role in the region’s financial ecosystem.
This strategic move not only strengthens Tether’s presence in the global market but also highlights the growing significance of the UAE as a key player in the cryptocurrency landscape.
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