Tether, the issuer of Tether, plans to develop a stablecoin pegged to the UAE dirham

Tether, a stablecoin issuing company, announced on Wednesday (21st) that it plans to collaborate with Phoenix Group, a cryptocurrency group listed in Abu Dhabi, to launch a stablecoin pegged to the United Arab Emirates dirham (AED), and will seek permission for the AED stablecoin in accordance with the Payment Token Services Act announced by the UAE Central Bank in June.

The latest stablecoin to be launched by Tether is a digital representation of the UAE dirham, with each token fully supported by UAE based liquidity reserves. Its press release states:

Tether's dirham pegged stablecoin will provide users with a seamless and cost-effective way to reap the benefits of AEDs, while utilizing the transparency and efficiency of blockchain technology. This digital asset will simplify international trade and remittances, reduce transaction fees, and provide hedging for currency fluctuations, thus playing an important role in the financial ecosystem of the United Arab Emirates and other regions

At present, the main stablecoins are pegged to the US dollar, among which Tether's USDT, with a market value of over 117 billion US dollars, remains the world's largest stablecoin, accounting for nearly 70% of the stablecoin market share.

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