Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Tether has revealed a collaboration with several companies based in the UAE to create and launch a stablecoin linked to the UAE dirham (AED). This new digital asset is designed to enhance international trade and lower fees associated with cross-border payments.
The issuer of the largest stablecoin by market capitalization, Tether, has partnered with Phoenix Group PLC, a technology conglomerate located in Abu Dhabi, and Green Acorn Investments Ltd, an investment firm based in the UAE. This collaboration will result in the introduction of a new stablecoin that is pegged to the dirham, the official currency of the United Arab Emirates.
This stablecoin will be entirely supported by liquid reserves held within the UAE. The project aims to establish a digital counterpart to the dirham, with its stability assured by Tether’s stringent reserve backing protocols.
Related Posts
Paolo Ardoino, CEO of Tether, stated that this initiative is intended not only to broaden the asset offerings available on Tether but also to provide UAE users with straightforward and cost-effective cross-border transfer options. He emphasized that the new stablecoin will help lower transaction expenses and offer protection against volatility for participants in the local cryptocurrency market.
Tether’s focus on the UAE market is logical, given that the region serves as a significant economic center. Local regulators are actively endorsing cryptocurrency projects and striving to clarify regulations surrounding stablecoins. For instance, the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has proposed a new regulatory framework for tokens linked to fiat-referenced tokens (FRT). This initiative aims to enhance oversight of the issuance of such assets and establish standards to ensure their stability. Key requirements from the regulator include maintaining liquid assets and adhering to rigorous operational standards.
The Central Bank of the United Arab Emirates (CBUAE) has recently determined that only issuers of stablecoins tied to dirhams will be eligible for a local license. Additionally, Tether has recently launched a new digital asset, the synthetic dollar Alloy (aUSDT), which is backed by gold.
Сообщение Tether to Develop Stablecoin Pegged to UAE Dirhams появились сначала на CoinsPaid Media.
