The UAE’s Phoenix Group PLC, listed on the Abu Dhabi Securities Exchange (ADX), recently announced its collaboration with Tether, the largest company in the digital asset industry, with plans to launch a stablecoin pegged to the UAE Dirham. This collaboration between Phoenix Group and Tether is supported by Green Acorn Investments.
The launch of a UAE Dirham-pegged stablecoin will revolutionize the digital assets landscape by providing a stable, reliable, and secure digital currency. The value of the global market for stablecoins is currently at $150 billion and is set to grow exponentially to $2.8 trillion by 2028.
Mirroring the value of the Dirham, the stablecoin aims to bridge the gap between traditional finance and the digital economy. In addition, it seeks to offer robust solutions for investors, businesses, and everyday consumers seeking stability in the world of cryptocurrency and digital assets.
Stablecoin to be a haven for assets
Phoenix Group and Tether will build the stablecoin on a state-of-the-art blockchain platform, ensuring security, transparency, and efficiency. The stablecoin will provide a haven for assets in an often unpredictable market, backed by the financial strength and tech expertise of Phoenix and Tether, in line with strict regulatory compliance measures.
“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,” stated Seyed Mohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group.
UAE Dirham-pegged stablecoin to be accessible globally
The UAE Dirham-pegged stablecoin will likely be accessible globally and will rely on the UAE’s economic strength and stability. Phoenix Group and Tether’s collaboration enhances both business operations and expands opportunities for growth in the digital age. In addition, it seeks to facilitate seamless transactions, reduce foreign exchange risks, and provide a reliable store of value.
“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,” added Farah Zafar, Managing Director and Group Chief Legal Officer.
Read: Enabling stablecoin growth in the MENA region: Key factors for success
UAE’s robust regulatory framework
The UAE government’s robust and forward-thinking regulatory framework, in addition to the rapidly increasing rate of cryptocurrency adoption, vividly complements Phoenix Group’s commitment to fostering innovation within the crypto sphere.
The UAE’s visionary regulatory regime, not only cements the UAE’s status as a global leader in the growing digital economy but also exemplifies the critical role that progressive regulatory approaches play in shaping the future of finance.
“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,” said Paolo Ardoino, CEO of Tether.
Tether expects the Dirham-pegged stablecoin to become an essential tool for businesses and individuals looking for a secure and efficient means of transacting in the local currency whether for cross-border payments, trading, or simply diversifying one’s digital assets.
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