Tether will issue a stablecoin backed by the UAE dirham

Tether, the company behind the USDT stablecoin, has announced its intentions to create a stable coin pegged to the #UAE dirham (AED).

It has become known that the company will be partnering with technology companies Phoenix Group and Green Acorn Investments to make this vision a reality. According to the statement, each stablecoin will be fully backed by the UAE's liquid reserves.

“Linked to the dirham, the stablecoin will provide users with a seamless and cost-effective way to access the benefits of the dirham while leveraging the transparency and efficiency of blockchain technology. This digital asset will optimize international trade and remittances, reduce transaction fees and provide a hedge against currency fluctuations,” the statement said.

Tether CEO #Paolo Ardoino emphasized that the new stablecoin will be an important tool for both businesses and individuals looking for a secure and efficient way to conduct transactions in dirhams, “whether for cross-border payments, trade or simply diversifying digital assets.”

Note that USDT currently has a market capitalization of $117.3 billion. Also, recall that #Tether has been authorized to issue 33 billion USDT on the #Ethereum and #TRON networks within one year.