Abu Dhabi’s Phoenix Group has partnered with cryptocurrency firm Tether to launch a stablecoin linked to the UAE dirham, aiming to meet the rising demand for the Gulf currency and provide an alternative to the US dollar.
By introducing the dirham-pegged stablecoin, Phoenix and Tether expect to reshape the digital assets sector by offering a stable and secure digital currency.
Phoenix and Tether announced that the dirham stablecoin will be accessible globally and “fully backed” by liquid reserves based in the UAE. They aim to streamline international trade, reduce transaction fees, and hedge against currency fluctuations.
This new stablecoin will bridge traditional finance with the digital economy, providing stability for investors, businesses, and everyday users in the cryptocurrency world.
“The UAE is becoming a significant global economic hub, and we believe our dirham-pegged token will be a valuable addition for our users,” said Paolo Ardoino, CEO of Tether. He added that Tether’s dirham stablecoin will become a crucial tool for secure and efficient transactions in the UAE dirham, whether for cross-border payments or trading.
Phoenix and Tether have not disclosed a launch date for the stablecoin. ether also offers stablecoins linked to the euro, Chinese yuan, Mexican peso, and gold.
The UAE is rapidly growing its cryptocurrency market, quickly adopting crypto payments in areas like real estate. This has boosted transaction volumes while advancing virtual asset regulations in Abu Dhabi and Dubai.
