Phoenix Group And Tether Partner To Introduce UAE Dirham-Pegged Stablecoin

UAE's tech giant, Phoenix Group PLC, listed on the Abu Dhabi Securities Exchange (ADX), has announced a partnership with Tether, a leading digital asset company. They plan to introduce a stablecoin pegged to the UAE Dirham, supported by Green Acorn Investments Ltd.

The global stablecoin market, valued at $150 billion, is projected to grow to $2.8 trillion by 2028. This initiative aims to provide a stable and secure digital currency by reflecting the value of the UAE Dirham. It seeks to bridge traditional finance with the digital economy, offering stability for investors and consumers in cryptocurrency.

Stablecoin Development and Security

The new stablecoin will be developed on an advanced blockchain platform, ensuring high security, transparency, and efficiency. Backed by Phoenix and Tether's financial strength and tech expertise, it will adhere to strict regulatory compliance measures.

"We are thrilled to be working with Tether on bringing a UAE Dirham-pegged stablecoin to the market and are confident of its potential in transforming the digital economy for users across the region and beyond," commented Seyed Mohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group. "This collaboration with Tether not only underscores our commitment to innovation and excellence but also reflects our dedication to providing financial solutions that meet the needs of our customers. Abu Dhabi's progressive stance towards blockchain, digital assets and innovation makes it the perfect launchpad."

Global Accessibility and Economic Impact

The Dirham-pegged stablecoin is expected to be available globally, rooted in the UAE's economic strength. It aims to facilitate seamless transactions, reduce foreign exchange risks, and offer a reliable store of value. This collaboration enhances business operations and growth opportunities in the digital age.

"The UAE is a trailblazer in digital currencies and financial innovation and this partnership between Tether and Phoenix group to create a Dirham pegged stablecoin reflects our commitment to innovate in the digital economy," commented Farah Zafar, Managing Director and Group Chief Legal Officer. "We are thrilled to be part of this groundbreaking initiative which will change the digital assets landscape globally."

Regulatory Framework Supporting Innovation

The UAE government's forward-thinking regulatory framework complements Phoenix Group's commitment to fostering innovation within crypto. This regulatory regime has enabled today's partnership development. The UAE's visionary approach cements its status as a global leader in the digital economy.

"We're pleased to announce this initiative to develop Tether's Dirham-pegged stablecoin, adding to our range of stablecoin options," said Paolo Ardoino, CEO of Tether. "The United Arab Emirates is becoming a significant global economic hub, and we believe our users will find our Dirham-pegged token to be a valuable and versatile addition. Tether's Dirham-pegged stablecoin is set to become an essential tool for businesses and individuals looking for a secure and efficient means of transacting in the United Arab Emirates Dirham whether for cross-border payments, trading, or simply diversifying one's digital assets."