- Tether to launch a UAE Dirham pegged stablecoin.
- Tether expands to UAE market amidst increased stablecoin demand and adoption.
Tether, the largest stablecoin issuer, has announced a milestone move to launch another stablecoin pegged to UAE dirham. According to the firm’s report, the company is set to launch a new stablecoin in partnership with Phoenix Group and Green Investments.
Tether through a press release shared through the official websites announced the milestone adding that,
“We’re pleased to announce this initiative to develop Tether’s Dirham-pegged stablecoin, adding to our range of stablecoin options.”
The set launch of a Tethers Dirham pegged stablecoin is essential for crypto users. It will provide various users with seamless and cost-effective means to access AED.
Tether UAE market penetration
Notably, the entrance of Tether into UAE markets show the significance of the UAE crypto industry on the global stage. Recently, a court in UAE ruled that cryptocurrencies are legal tenders and can be used to pay salaries.
Over the past few years, the UAE has become a crypto hub with an increased user base.
Therefore, as Tether’s press release posits, Dirham pegged stablecoin will streamline international trade, and reduce transaction costs and remittances.
Since 2022, the Crypto market in UAE has expanded after the establishment of the Virtual Asset Recovery Authority. Therefore, a favorable regulatory framework makes the UAE a suitable destination for crypto firms such as Tether.
Implications to Tether’s USDT
This Tether’s move to expand to UAE is part of its broader strategy to reach the global market while leveraging the increased demand for stablecoins.
Throughout the year, the stablecoins market cap has experienced sustained growth. According to Defillama, the stablecoins market cap has grown from $130 billion to $168 billion YTD.
Source: DefiLlama
The increased demand for USDT shows the significance of stablecoins in the crypto market.
