Tether Plans to Develop UAE Dirham-Pegged Stablecoin Alongside Phoenix Group

As a seasoned researcher with a penchant for cryptocurrencies and a knack for spotting trends, I find the recent development between Tether and Phoenix Group intriguing. With over $117 billion market cap, Tether’s USDT dominates the stablecoin sector, accounting for nearly 70% of the market share. However, it seems that other fiat-pegged tokens are still playing catch-up, like Tether’s euro equivalent EURT with a mere $30 million market cap.

Tether, known as the creator of the world’s largest stablecoin, has announced its intention to launch a new token tied to the UAE Dirham. This project will be carried out in partnership with Phoenix Group, a cryptocurrency company listed on Abu Dhabi’s stock exchange (PHX).

As a researcher delving into the world of digital assets, I’ve observed that stablecoins pegged to other fiat currencies pale in significance when compared to their counterparts. For instance, Tether’s Euro-linked token (EURT) boasts a market capitalization of merely $30 million.

Tether intends to apply for approval of its dirham-backed digital coin under the U.A.E.’s central bank’s Payment Token Services Regulation, which was announced in June. This move could potentially strengthen its position, considering Dubai and Abu Dhabi’s well-known status as hubs for cryptocurrencies.