Tether to issue new stablecoin pegged to fiat currency AED

USDT stablecoin issuer Tether has announced plans to launch a new stablecoin. Its value will be pegged to the United Arab Emirates dirham (AED). According to a press release provided to Cointelegraph, the new asset will be implemented in partnership with Phoenix Group PLC and Green Acorn Investments Ltd.

The collaboration aims to create a digital representation of the dirham that is “fully backed by the UAE’s liquid reserves,” according to the document. Tether’s transparent and robust reserve standards “ensure that each token is pegged to the value of the dirham, providing stability and confidence in its value.”

The document states that the new asset will streamline international trade and remittances. It will reduce transaction fees and offer protection against currency fluctuations. Tether CEO Paolo Ardoino emphasized that the company is “excited to add a dirham-pegged stablecoin to our stablecoin portfolio.”

According to him, the UAE is becoming an important global economic hub, and local users will find that the new token, pegged to the dirham, will be a valuable and versatile asset for them. In partnership with Phoenix Group PLC, Tether aims to provide businesses and individuals with an important transaction tool.

Phoenix Group co-founder and CEO Seyed Mohammed Alizadehfard said the partnership reflects his company’s commitment to providing cutting-edge financial solutions to its customers. It was previously reported that Tether is launching USDT on Aptos blockchain. With the integration, fees using USDT will be beneficial for many users, including corporations and those who use microtransactions.