UAE-based company Phoenix Group and global stablecoin issuer Tether announced the launch of the first-ever dirham-backed stablecoin, in an exclusive event on Wednesday.
The new stablecoin, which will be pegged to the UAE dirham, aims to revolutionise the future of digital assets in the Middle East region and beyond.
“This partnership has the potential to revolutionise the entire financial ecosystem in the Middle East and beyond by bridging the gap between traditional finance and the future of digital assets,” said Farah Zafar, Managing Director, Phoenix Group.
The partnership brings together Phoenix Group, the first and only listed crypto company in the GCC region, and Tether, the world’s largest stablecoin issuer by market capitalisation.
Phoenix Group is the fourth-largest bitcoin miner globally, generating up to 3 percent of the world’s bitcoin.
The new stablecoin is projected to capitalise on the rapidly growing global stablecoin market, which is estimated to reach $2.8 trillion by 2028. Representatives from both Phoenix and Tether expressed their enthusiasm about the potential impact of the venture.
“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 in the United Arab Emirates Dirham whether for cross-border payments, trading, or simply diversifying one’s digital assets,” said Paolo Ardoino, CEO of Tether.
“Today marks a monumental event in the world of digital finance,” Zafar concluded.
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