Highlights:
- Tether introduces a new AED-pegged stablecoin in partnership with Phoenix Group and Green Acorn Investments.
- UAE’s VARA enhances crypto regulation, boosting Dubai and Abu Dhabi’s roles as emerging cryptocurrency hubs.
- Tether extends USDT to the Aptos blockchain for quicker, more cost-effective digital currency transactions.
Tether is set to introduce a new stablecoin pegged to the United Arab Emirates dirham (AED). Tether is creating a new token with Abu Dhabi-based Phoenix Group (PHX) and Green Acorn Investments Ltd. This announcement on August 21 is part of Tether’s continued effort to expand into international markets.
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Tether to Develop UAE Dirham-Pegged Stablecoin
Read more:https://t.co/dkiDAI0y15
— Tether (@Tether_to) August 21, 2024
Tether Expands with Dirham-Pegged Stablecoin
Tether’s new stablecoin aims to provide a cost-effective global trade and remittance solution while protecting against currency fluctuations. Stablecoins, typically pegged to fiat currencies, offer users a more stable alternative to volatile cryptocurrencies like Bitcoin (BTC). Tether’s flagship product, USDT, remains the largest stablecoin worldwide, with a market cap exceeding $117 billion and a dominant market share of nearly 70%.
Paolo Ardoino, CEO of Tether, explained the potential of the new dirham-pegged stablecoin to become an “essential tool” for businesses and individuals. Consequently, it highlighted the growing economic significance of the UAE. He showed confidence that the new token would be a valuable addition for users seeking a secure and efficient transaction.
UAE Embraces Crypto Growth
Introducing a dirham-backed stablecoin complements the UAE’s growing influence in the global cryptocurrency market. Since creating the Virtual Asset Regulatory Authority (VARA) in 2022, Dubai has experienced a significant increase in cryptocurrency adoption. Consequently, VARA, an independent regulatory body, manages the licensing, regulation, and governance of the cryptocurrency sector in the region.
Tether plans to seek licensing for the new stablecoin under the UAE Central Bank’s Payment Token Services Regulation, which was introduced in June. This move could further enhance the stablecoin’s credibility and adoption, particularly given Dubai and Abu Dhabi’s reputations as emerging crypto hubs.
Tether’s Global Reach and Regulatory Challenges
With the introduction of the dirham-pegged stablecoin, Tether expands its portfolio of fiat-backed stablecoins, which already includes the euro-backed EURT and the Chinese yuan-backed CNHT.
However, despite its market leadership, Tether has experienced criticism concerning the potential misuse of USDT by sanctioned entities and for other illicit activities. To address these concerns and monitor USDT transactions in the secondary market, Tether joined with blockchain analytics firm Chainalysis.
In response to the growing demand for digital assets in the Middle East, Tether launched the AED-pegged stablecoin. Local partners and regulatory backing support this new stablecoin, developed to align with the UAE’s interest in cryptocurrency. With Tether’s strong market position and the region’s changing financial environment, the dirham-pegged token has excellent potential. Moreover, It provides secure and easy transaction options, likely increasing its popularity.
Tether Launches USDT on Aptos
Tether has recently expanded its USDT stablecoin to the Aptos blockchain, aiming to leverage Aptos’ advanced technology for faster and more cost-effective transactions. This move is part of Tether’s broader strategy to increase the accessibility and efficiency of digital currencies worldwide.
Tether (USD₮) To Launch on Aptos Blockchain
Learn more: https://t.co/oAZcqa5RRv pic.twitter.com/0Mp7Lwm82b— Tether (@Tether_to) August 19, 2024
Aptos, known for its high-speed and scalable blockchain, has grown significantly. The network’s average daily active users surged from 96,000 in January 2024 to 170,000 by July 2024, highlighting its rising popularity and expanding influence in blockchain.
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