Tether enters UAE, to issue stablecoin pegged to AED
The leading stablecoin Tether has announced plans to issue a new stablecoin pegged to the United Arab Emirates dirham (AED). This token will be launched in partnership with the Abu Dhabi-based technology group Phoenix Group PLC and with the backing of Green Acorn Investments Ltd. It will seek approval in accordance with the payment services regulations recently announced by the Central Bank of the United Arab Emirates.
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The United Arab Emirates Dirham (AED) is the legal tender of the United Arab Emirates (UAE).
In June this year, the board of the Central Bank of the United Arab Emirates (CBUAE) discussed the country's "Financial Infrastructure and Technology (FIT) Project." During that meeting, regulations for stablecoins were approved, outlining specific guidelines for the issuance, licensing, and regulation of payment tokens.
An article at the time quoted Kokila Alagh, founder of KARM Law Advisors, describing the regulations:
The stablecoin must be backed by the UAE and cannot be pegged to other currencies or digital assets; furthermore, merchants and service providers can only accept tokens based on the UAE, and consumers are not allowed to make payments using other virtual assets.
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In response to this development, Tether has partnered with the Abu Dhabi-based technology group Phoenix Group PLC and Green Acorn Investments Ltd to apply for a license to issue a stablecoin pegged to the AED, based on the recent payment services regulations announced by the Central Bank of the United Arab Emirates.
The CEO of Tether, Paolo Ardoino, stated:
The United Arab Emirates is becoming a significant global economic center, and Tether's AED stablecoin will be a crucial tool for businesses and individuals looking for a secure and efficient way to transact in AED, whether for cross-border payments, trading, or diversifying digital assets.