Tether Expands Its Stablecoin Dominance With a New Product Focused on the UAE

The “world’s largest blockchain company” on Wednesday announced it is teaming up with the Abu Dhabi-listed crypto-mining and blockchain conglomerate Phoenix Group and investment firm Green Acorn Investment to launch a new stablecoin pegged to the United Arab Emirates dirham (AED).

Cryptocurrency stablecoin issuer Tether is set to launch a new stablecoin pegged to the United Arab Emirates dirham (AED) in collaboration with Phoenix Group and Green Acorn Investment.

The UAE has quickly become a major crypto hub, with both Abu Dhabi and Dubai enacting virtual asset regulation and enabling crypto payments for sectors like real estate and education.

Tether is aiming to capitalize on this growth by offering a stablecoin that provides an alternative to the US dollar, especially considering the dirham’s potential for dominance "as global trade shifts."

The launch is still pending approval from the UAE Central Bank, which typically takes months.

Tether currently offers a range of stablecoins, including USDT (pegged to the US dollar), as well as stablecoins pegged to the euro, Chinese yuan, Mexican peso, and gold.

Stablecoins are designed to maintain a 1:1 value with the fiat currency they're pegged to, making them particularly useful for cross-border payments due to their ability to reduce transfer fees.

According to a statement announcing the launch, the dirham-pegged stablecoin is intended to "streamline international trade and remittances, reduce transaction fees, and provide a hedge against currency fluctuations."

Tether has been actively expanding its product offerings to cater to different markets. In April, the company invested $200 million in biotech startup Blackrock Neurotech, acquiring a majority stake.

The company also secured a $100 million placement into Bitcoin mining company Bitdeer, with the option to increase its stake with an additional $50 million investment, as reported in May.

More recently, Tether launched Alloy by Tether, a tethered digital asset backed by Tether Gold.

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