Abu Dhabi, UAE – Phoenix Group, a multi-billion dollar tech conglomerate listed on the Abu Dhabi Securities Exchange (ADX), has announced a groundbreaking collaboration with Tether, the global leader in the digital asset industry. Together, they plan to launch a stablecoin pegged to the United Arab Emirates Dirham (AED), supported by Green Acorn Investments Ltd. This initiative is poised to transform the digital asset landscape by offering a stable, reliable, and secure digital currency.
As the global stablecoin market, currently valued at $150 billion, is projected to grow to $2.8 trillion by 2028, the introduction of a Dirham-pegged stablecoin represents a significant step forward in bridging traditional finance with the digital economy. The new stablecoin will mirror the value of the UAE Dirham, one of the world’s most stable currencies, providing a robust solution for investors, businesses, and consumers seeking stability in the volatile world of cryptocurrency.
Seyed Mohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, expressed his enthusiasm about the partnership: “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. 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 stablecoin will be built on a state-of-the-art blockchain platform, ensuring unmatched security, transparency, and efficiency. Designed to serve as a haven in an often unpredictable market, the stablecoin will be backed by the financial strength and technological expertise of Phoenix and Tether. It will be governed by strict regulatory compliance measures, aligning with the UAE government’s forward-thinking regulatory framework that has facilitated the growth of the digital asset sector.
“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,” said Farah Zafar, Managing Director and Group Chief Legal Officer at Phoenix Group. “We are thrilled to be part of this groundbreaking initiative, which will change the digital assets landscape globally.”
Tether’s CEO, Paolo Ardoino, highlighted the significance of the collaboration: “We’re pleased to announce this initiative to develop Tether’s Dirham-pegged stablecoin, adding to our range of stablecoin options. 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 UAE Dirham, whether for cross-border payments, trading, or simply diversifying one’s digital assets.”
The Dirham-pegged stablecoin will be accessible globally and deeply rooted in the UAE’s economic strength and stability. By facilitating seamless transactions, reducing foreign exchange risks, and providing a reliable store of value, the collaboration between Phoenix Group and Tether is set to enhance business operations and expand opportunities for growth in the digital age.
This strategic move not only solidifies the UAE’s status as a global leader in the digital economy but also underscores the critical role of progressive regulatory approaches in shaping the future of finance.
