The partnership between Phoenix Group and Tether aims to transform the digital asset landscape with the launch of a UAE Dirham-pegged stablecoin, designed to bridge traditional finance and the digital economy.
Phoenix Group PLC, a prominent tech conglomerate listed on the Abu Dhabi Securities Exchange (ADX), has partnered strategically with Tether, the global digital asset company, to introduce a stablecoin anchored to the United Arab Emirates Dirham. Supported by Green Acorn Investments Ltd., this partnership aims to revolutionise the digital finance landscape.
This stablecoin will be built on a cutting-edge blockchain platform, ensuring top-tier security, transparency, and efficiency. The project is backed by the financial strength and technological expertise of Phoenix Group and Tether and will operate under strict regulatory compliance.
The launch of this Dirham-pegged stablecoin is poised to significantly impact the digital asset industry by providing a stable, reliable, and secure digital currency.
By mirroring the value of the UAE Dirham, one of the world’s most stable currencies, this initiative seeks to bridge the gap between traditional finance and the digital economy, offering robust financial solutions for investors, businesses, and consumers.
The currency aims to serve as a safe haven in a volatile market, enhancing business operations and growth opportunities in the digital era.
The global market for stablecoins, currently valued at $150 billion, is expected to escalate to $2.8 trillion by 2028.
Seyed Mohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group, expressed his enthusiasm about the partnership, stating, “We are delighted to collaborate with Tether on launching a UAE Dirham-pegged stablecoin. We are confident in its potential to transform the digital economy for users in the region and beyond. This partnership underscores our commitment to innovation and excellence while reflecting our dedication to providing financial solutions that meet the evolving needs of our customers. Abu Dhabi’s forward-thinking stance on blockchain and digital assets makes it an ideal environment for this launch.”
The UAE government’s progressive regulatory framework, combined with the rapid adoption of cryptocurrency, aligns with Phoenix Group’s commitment to innovation in the crypto space.
Farah Zafar, Managing Director and Group Chief Legal Officer of Phoenix Group commented, “The UAE is at the forefront of digital currency and financial innovation, and this collaboration with Tether highlights our commitment to advancing the digital economy. We are thrilled to be part of this groundbreaking initiative, which is set to redefine the global digital asset landscape.”
This regulatory regime bolsters the UAE’s status as a global leader in the emerging digital economy. It demonstrates the critical role of forward-thinking regulation in shaping the future of finance.
Paolo Ardoino, CEO of Tether, added, “We are excited to announce the development of Tether’s Dirham-pegged stablecoin, which is adding to our portfolio of stablecoin options. As the UAE continues to establish itself as a significant global economic hub, we believe this Dirham-pegged token will become an essential tool for businesses and individuals seeking a secure and efficient means of transacting in UAE Dirham.”
