Tether plans to launch a new stablecoin pegged to the United Arab Emirates dirham in collaboration with Phoenix Group and Green Acorn Investments.
According to a press release, the token will "lead the way in seeking licensing under the UAE Central Bank's recently announced Payment Token Services Regulation."
According to Tether, the dirham-pegged stablecoin will provide users with a more cost-effective and transparent way of accessing the currency and a hedge against currency fluctuations.
"We're pleased to announce this initiative to develop Tether's Dirham-pegged stablecoin, adding to our range of stablecoin options," Tether CEO Paolo Ardoino said.
"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," he added, claiming: "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 comply diversifying one's digital assets."
Tether's dirham-pegged stablecoin joins the company's stable of other fiat-pegged tokens, such as USDT and EURT. Tether has long been and remains the largest issuer of stablecoins by market capitalization.