Phoenix Group and Tether collaborate to launch a dirham-pegged stablecoin, poised to transform the global digital economy by leveraging the UAE currency’s stability and advancing blockchain technology.
In a groundbreaking move poised to reshape the global digital economy, Abu Dhabi Securities Exchange-listed Phoenix Group, in partnership with digital asset giant Tether, has announced the launch of a stablecoin pegged to the UAE dirham. This innovative financial tool, set to roll out by January 2025, promises to capitalize on the stability of the UAE’s currency while tapping into the burgeoning global stablecoin market, which is expected to surge from $150 billion to an estimated $2.8 trillion by 2028.
The introduction of the dirham-pegged stablecoin represents a significant leap forward in the digital asset landscape, particularly in a region known for its robust economic foundations. Built on a blockchain platform, the stablecoin is designed to offer unparalleled security, transparency, and efficiency in transactions, aligning with the UAE’s progressive approach towards blockchain and digital innovation.
Stablecoins, a type of cryptocurrency, are uniquely tied to stable assets such as fiat currencies or commodities like gold, ensuring a steady value that mitigates the volatility often associated with digital currencies. Among these, fiat-backed stablecoins are particularly popular, being pegged to currencies such as the US dollar. The UAE dirham, bolstered by the nation’s substantial sovereign wealth funds and its peg to the US dollar, stands out as one of the most reliable currencies globally, making it an ideal candidate for this innovative digital asset.
Seyed Mohammad Alizadehfard, co-founder and group CEO of Phoenix Group, expressed strong confidence in the transformative potential of the dirham-pegged stablecoin. “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,” he stated.
Alizadehfard further emphasized that the dirham-pegged coin is expected to be integrated into digital wallets by January 2025, marking a significant milestone in the UAE’s digital economy. The launch of this stablecoin is anticipated to offer users across the region—and potentially beyond—a secure and efficient means of conducting transactions in the UAE dirham.
Munaf Ali, co-founder and managing director of Phoenix Group, highlighted the meticulous efforts being made to ensure the stablecoin’s compliance and success. “We are working very closely with the regulator and all stakeholders to get it as soon as possible. After the approval, it will be listed on all exchanges. It will be at par with dirham—one stablecoin equal to one dirham,” Ali explained.
The stablecoin is expected to become a valuable tool for businesses and individuals looking to leverage the security and efficiency of the UAE dirham in their financial dealings. Paolo Ardoino, CEO of Tether, echoed this sentiment, stating, “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. The 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 UAE dirham, whether for cross-border payments, trading, or simply diversifying one’s digital assets.”
As the global digital economy continues to evolve, the introduction of the dirham-pegged stablecoin by Phoenix Group and Tether is poised to position the UAE at the forefront of financial innovation. This development not only enhances the UAE’s stature as a global economic hub but also underscores its commitment to embracing cutting-edge technologies that drive progress in the digital age. The stablecoin’s launch could well be a game-changer, offering a new level of stability and trust in the fast-paced world of digital finance.
