Overview
Abu Dhabi Securities Exchange-listed Phoenix Group and cryptocurrency firm Tether announced plans to launch a stablecoin pegged to the UAE dirham (AED). Stablecoins are digital tokens backed by traditional assets like fiat currencies, designed to minimize volatility.
Key Features of the New Stablecoin
- 1:1 Peg: Each stablecoin will equal 1 UAE dirham.
- Target Launch: January 2025 (pending regulatory approvals).
- Backing: Tether’s expertise in stablecoin issuance (e.g., USDT, which has a $117B market cap).
Why the UAE Dirham?
- Stability: The UAE dirham’s strong monetary policies make it an ideal peg.
- Strategic Growth: Paolo Ardoino, Tether CEO, cited increasing global trade demand for AED.
- Regulatory Support: UAE’s pro-crypto stance, including virtual asset frameworks in Dubai and Abu Dhabi.
Market Impact
- Stablecoin Sector: Projected to reach $2.8T by 2028 (per CoinGecko).
- Regional Demand: Addresses Gulf markets’ need for non-dollar payment alternatives.
- Adoption Boost: Follows Dubai’s recent court ruling allowing crypto salary payments.
FAQs
Q: How is this stablecoin different from USDT?
A: It’s pegged to AED instead of USD, catering to Middle Eastern markets.
Q: What’s the expected use case?
A: Payments, remittances, and crypto trading with reduced volatility.
Q: Will it be regulated?
A: Yes, Phoenix Group is collaborating with UAE authorities for compliance.
👉 Explore crypto innovations shaping the Middle East’s digital economy.
The UAE’s Crypto Ambitions
The UAE aims to be a global crypto hub, leveraging:
- Progressive Policies: Fast-tracked crypto payments for real estate and education.
- Infrastructure: Established free zones with clear virtual asset regulations.
Note: All promotional links and non-English references were removed per guidelines.