Phoenix Group & Tether Partner to Create UAE Dirham Stablecoin

UAE’s multi-billion dollar tech conglomerate, Phoenix Group PLC, listed on the Abu Dhabi Securities Exchange (ADX), has today announced its collaboration with Tether, the largest company in the digital asset industry. This partnership aims to launch a stablecoin pegged to the United Arab Emirates Dirham, supported by Green Acorn Investments Ltd.

Stablecoin Market Growth and Potential Impact

With the global market for stablecoins currently valued at $150 billion and expected to grow exponentially to $2.8 trillion by 2028, this initiative is poised to revolutionize the digital assets landscape. The stablecoin, which mirrors the value of the UAE Dirham—one of the world’s most stable currencies—intends to bridge the gap between traditional finance and the digital economy. This offers a robust solution for investors, businesses, and everyday consumers seeking stability in the cryptocurrency and digital assets world.

Advanced Blockchain Technology and Security

The stablecoin will be built on a state-of-the-art blockchain platform, ensuring unmatched security, transparency, and efficiency. Backed by the financial strength and technological expertise of Phoenix and Tether, and governed by strict regulatory compliance measures, this stablecoin aims to provide a haven for assets in an often unpredictable market.

"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," commented Seyed Mohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group. "This collaboration with Tether not only underscores our commitment to innovation and excellence but also reflects our dedication to providing financial solutions that meet the needs of our customers. Abu Dhabi’s progressive stance towards blockchain, digital assets and innovation makes it the perfect launchpad.”

Global Accessibility and Economic Integration

The Dirham-pegged stablecoin is anticipated to be accessible globally and deeply rooted in the UAE’s economic strength and stability. The collaboration is on a mission to facilitate seamless transactions, reduce foreign exchange risks, and provide a reliable store of value. This initiative enhances business operations and expands opportunities for growth in the digital age.

“The UAE is a trailblazer in digital currencies and financial innovation and this partnership between Tether and Phoenix group to create a Dirham-pegged stablecoin reflects our commitment to innovate in the digital economy,” commented Farah Zafar, Managing Director and Group Chief Legal Officer. “We are thrilled to be part of this groundbreaking initiative which will change the digital assets landscape globally”.

UAE’s Regulatory Framework and Visionary Leadership

The UAE government's robust and forward-thinking regulatory framework, coupled with the rapidly increasing rate of cryptocurrency adoption, complements Phoenix Group's unwavering commitment to fostering innovation within the crypto sphere. The regulatory regime has enabled the development of this partnership, cementing the UAE's status as a global leader in the digital economy. This collaboration exemplifies the critical role that progressive regulatory approaches play in shaping the future of finance.

"We're pleased to announce this initiative to develop Tether’s Dirham-pegged stablecoin, adding to our range of stablecoin options," said Paolo Ardoino, CEO of Tether. "The United Arab Emirates 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.”