Phoenix Group PLC, a major UAE-based tech company listed on the Abu Dhabi Securities Exchange, has partnered with Tether, a leading player in digital assets, to launch a new stablecoin pegged to the UAE Dirham. This project, supported by Green Acorn Investments Ltd., is set to transform the digital currency market.
Global stablecoin market
The global stablecoin market, currently valued at $150 billion, is projected to reach $2.8 trillion by 2028. The new stablecoin aims to offer a secure and stable digital currency by aligning with the UAE Dirham, known for its stability. It will help bridge the gap between traditional finance and the digital economy, benefiting investors, businesses, and consumers.
Built on an advanced blockchain platform, the stablecoin will ensure high security, transparency, and efficiency. It will offer a reliable option in a volatile market, backed by the expertise of Phoenix and Tether and adhering to strict regulatory standards.
UAE Dirham-pegged stablecoin
“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.”
The Dirham pegged stablecoin is anticipated to be accessible globally and will be deeply rooted in the UAE’s economic strength and stability. On a mission to facilitate seamless transactions, reduce foreign exchange risks, and provide a reliable store of value, the collaboration enhances both business operations and expanding opportunities for growth in the digital age.
Digital currencies in UAE
“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
The UAE government’s robust and forward-thinking regulatory framework, coupled with the rapidly increasing rate of cryptocurrency adoption, vividly complement Phoenix Group’s unwavering commitment to fostering innovation within the crypto sphere. The regulatory regime has provided the framework which has enabled the development of this partnership today. The UAE’s visionary regulatory regime not only cements the UAE’s status as a preeminent global leader in this burgeoning digital economy but also exemplifies the critical role that progressive regulatory approaches play in shaping the future of finance.
“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.”
tanvir@dubainewsweek.com
