Tether, the leading stablecoin issuer, has announced its plan to issue a new stablecoin pegged to the United Arab Emirates’ (UAE) legal tender, the UAE Dirham (AED). This token will be launched in collaboration with the Abu Dhabi-based technology group Phoenix Group PLC and is supported by Green Acorn Investments Ltd. It will apply for a license in accordance with the payment service regulations recently announced by the Central Bank of the United Arab Emirates.

The United Arab Emirates Dirham (AED) is the legal currency of the United Arab Emirates (UAE).

In June of this year, the board of directors of the Central Bank of the United Arab Emirates (CBUAE) discussed the country’s “Financial Infrastructure (FIT) Plan.” At that time, the meeting approved the release of stablecoin regulatory regulations, which clearly specified the details of the issuance, licensing, and supervision of payment tokens.

Kokila Alagh, the founder of KARM Legal Counsel, described the regulations as follows:
The stablecoin must be backed by the UAE and cannot be pegged to other currencies or digital assets. At the same time, merchants and service providers can only accept payments in tokens based on the UAE, and consumers are also not allowed to make payments through other virtual assets.

In response to this development, Tether has partnered with the Abu Dhabi-based technology group Phoenix Group PLC and Green Acorn Investments Ltd. They will apply for a license in accordance with the payment service regulations recently announced by the Central Bank of the United Arab Emirates to issue a stablecoin pegged to the AED.

Paolo Ardoino, the CEO of Tether, said:
The United Arab Emirates is emerging as an important global economic hub. Tether’s AED stablecoin will become an essential tool for businesses and individuals seeking a secure and efficient way to transact in AED, whether it’s for cross-border payments, trading, or diversifying digital assets.