Tether to Launch Dirham-Pegged Stablecoin in Partnership with Phoenix Group

Tether Announces Plans for Dirham-Pegged Stablecoin

Tether, the company behind the world’s leading stablecoin, has revealed its intentions to launch a new token that will be pegged to the United Arab Emirates’ dirham. This initiative is in partnership with the Abu Dhabi-listed cryptocurrency conglomerate, Phoenix Group (PHX). Stablecoins, which are digital assets generally linked to fiat currencies, provide users with a safeguard against the price fluctuations often seen in cryptocurrencies like Bitcoin (BTC).

Currently, the major stablecoins are predominantly pegged to the U.S. dollar, with Tether’s USDT holding a dominant position in the market, boasting a market capitalization exceeding $117 billion. According to data from CoinGecko, USDT commands nearly 70% of the stablecoin market share. In stark contrast, tokens pegged to other fiat currencies remain relatively minor; for instance, Tether’s euro equivalent, EURT, has a market cap of merely $30 million.

Tether is aiming to acquire licensing for its dirham stablecoin under the U.A.E. central bank’s Payment Token Services Regulation, which was introduced in June. This regulatory endorsement could significantly bolster Tether’s presence in the region, particularly given the established reputations of Dubai and Abu Dhabi as prominent hubs for cryptocurrency innovation.