Phoenix Group, listed on the Abu Dhabi Securities Exchange, is teaming up with Tether to create a new stablecoin tied to the UAE dirham. This coin aims to make use of the dirham’s stability and enter the expanding global stablecoin market, which is set to grow from $150 billion to $2.8 trillion by 2028.
Built for Security and Efficiency
The dirham-pegged stablecoin will run on blockchain technology, ensuring it’s secure, transparent, and efficient. Stablecoins keep their value steady by being linked to reliable assets like major currencies or commodities. The UAE dirham, backed by its peg to the US dollar and strong financial reserves, is a solid choice for this stablecoin.
What Leaders Are Saying
Seyed Mohammad Alizadehfard, co-founder and group CEO of Phoenix Group, believes the new stablecoin will greatly benefit the region and beyond. It’s expected to launch in January 2025.
“Our partnership with Tether highlights our focus on innovation and meeting our customers’ needs. Abu Dhabi’s forward-thinking approach to digital assets makes it the perfect place for this launch,” said Alizadehfard.
Munaf Ali, co-founder and managing director of Phoenix Group, mentioned that they are working with regulators to ensure the coin’s timely release. It will be listed on major exchanges, with each stablecoin worth exactly one dirham.
Looking Forward
Paolo Ardoino, CEO of Tether, noted that the new stablecoin will be useful for businesses and individuals dealing with the UAE dirham. This launch comes after a Dubai court allowed salaries to be paid in cryptocurrencies.
This new dirham-pegged stablecoin shows the UAE’s growing role in the global economy and highlights the increasing importance of digital assets.
