- The Dirham-pegged stablecoin is expected to generate multiple opportunities to significantly bolster the digital economy.
Abu Dhabi-listed Phoenix Group PLC in collaboration with Tether, the largest company in the digital asset industry, plans to launch a stablecoin pegged to the United Arab Emirates Dirham.
The collaboration between Phoenix Group and Tether is supported by Green Acorn Investments Ltd.
With the global market for stablecoins currently valued at $150 billion and set to grow exponentially to $2.8 trillion by 2028, the initiative is set to revolutionise the digital assets landscape by providing a stable, reliable, and secure digital currency.
By mirroring the value of the United Arab Emirates Dirham (amongst the world’s most stable currencies), the stablecoin aims to bridge the gap between traditional finance and the digital economy.
Digital economy
The stablecoin will be built on a state-of-the-art blockchain platform, ensuring unmatched security, transparency, and efficiency. The stablecoin will provide a haven for assets in an often unpredictable market, backed by the financial strength and tech expertise of Phoenix and Tether, and governed by strict regulatory compliance measures.
“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,” Seyed Mohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, said.
Moreover, he said that Abu Dhabi’s progressive stance towards blockchain, digital assets and innovation makes it the perfect launchpad.
Increasing adoption rate
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 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, whether for cross-border payments, trading, or simply diversifying one’s digital assets,” Paolo Ardoino, CEO of Tether, said.