Tether’s New AED-Pegged Stablecoin: UAE’s Secret Weapon for Digital Dominance!

Tether, a top Bitcoin (BTC) holder focused on the real-world assets (RWA) tokenization space, has announced plans to develop a new stablecoin that is pegged in the United Arab Emirates Dirham (AED). According to the announcement, Tether has partnered with Phoenix Group PLC, and Acorn Investments Ltd to develop and launch the AED-pegged stablecoin in the near term. 

As a result, Tether will be adding an AED-pegged stablecoin to its class of products including  USDt, EURT, CNHT, MXNT, XAUT, and aUSDT. However, the company has not yet specified the chains to be used to develop and launch the AED-stablecoin, but speculation leads to the Ethereum (ETH) network as the top contender.

“Tether’s Dirham-pegged stablecoin is set to become an essential tool for businesses and individuals looking for a secure and efficient means of transacting in the United Arab Emirates Dirham whether for cross-border payments, trading, or simply diversifying one’s digital assets,” Paolo Ardoino, CEO of Tether, noted.

UAE Paves the Way for Stablecoins Ahead of CBDC Launch

The UAE has been at the forefront of web3 and digital asset endorsement in the past few years. Already, the UAE government through the Dubai Financial Services Authority (DFSA) has provided clear crypto regulations, thus attracting both local and foreign investments.

“This collaboration with Tether not only underscores our commitment to innovation and excellence but also reflects our dedication to providing financial solutions that meet the needs of our customers. Abu Dhabi’s progressive stance towards blockchain, digital assets, and innovation makes it the perfect launchpad,” Seyedmohammad Alizadehfard, co-founder and CEO of Phoenix Group, noted.

The Central Bank of UAE (CBUAE) has been developing and researching the CBDC space to compete with other global leaders led by China and Europe.

Market Picture

The stablecoins market has grown into an important sector of the cryptocurrency industry in the last few years. According to the latest market data, the stablecoin industry is currently valued at about $169 billion and a daily average trading volume of around $52 billion. 

Tether’s USDT, Circle’s USDC, and Dai (DAI) have the lion’s share of the stablecoins market amid the emergence of other competitors led by First Digital USD (FDUSD), and Ethena USDe (USDE).

Amid the mainstream adoption of digital assets, experts believe the stablecoins industry will reach a $2.8 trillion valuation by 2028.


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