In a significant development for the United Arab Emirates’ burgeoning digital finance ecosystem, Tether, the leading stablecoin issuer behind USDT, has unveiled its new dirham-pegged stablecoin on The Open Network (TON) blockchain. This initiative, announced by Alessandro Giori, Tether’s senior strategic partnership manager, at the TON Gateway event in Dubai, reflects Tether’s commitment to expanding its offerings in the fast-evolving Gulf region.
Strengthening the UAE’s Digital Currency Landscape
The introduction of Tether’s dirham-pegged stablecoin aligns seamlessly with the UAE’s supportive regulatory framework, which encourages secure and compliant digital currency initiatives. Earlier this year, Tether proposed a fully backed digital representation of the UAE dirham, collaborating with local firms like Phoenix Group and Green Acorn Investments to ensure stability and instill confidence in this new financial instrument.
The decision to launch this stablecoin on the TON blockchain is particularly noteworthy. TON’s robust infrastructure allows for rapid and efficient transactions, making it an attractive platform for businesses seeking reliable digital payment solutions. With over 160,000 daily USDT transactions and 7.6 million wallets actively engaged on the blockchain, the growth of the TON ecosystem is undeniable. Giori highlighted that more than 100 crypto platforms are now utilizing USDT based on TON, further indicating its increasing adoption among businesses.
Regulatory Framework Fosters Innovation
The UAE has been proactive in its approach to cryptocurrency regulation, having established a licensing framework for stablecoins in June. This regulatory clarity is crucial for fostering innovation within the digital finance space and has positioned the UAE as a major hub for cryptocurrency acceptance and development.
Moreover, the recent in-principle approval granted to AED Stablecoin by the UAE’s central bank on October 18 underscores the region’s commitment to regulated digital currencies. If granted full regulatory approval, AED Stablecoin could pave the way for a compliant dirham-backed digital currency in the UAE, enhancing the local financial ecosystem even further.
Also read : Tether’s Record $2.5 Billion Profit In Q3 2024 Highlights Growing Demand For Stablecoins.
Tether’s Vision for Localized Digital Assets
Tether’s dirham-pegged stablecoin is designed to cater to the rising demand for localized digital assets. This innovation aims to provide alternatives to dollar-based transactions, offering users greater financial flexibility both within the UAE and internationally. By tapping into the local currency, Tether is positioning itself to meet the needs of businesses and individuals seeking efficient and compliant payment options.
Additionally, Tether’s expansion into Turkey to tokenize its boron reserves reflects the company’s broader vision of modernizing commodity trading systems and adapting to the unique financial landscapes of various regions.
