- Tether is launching a dirham-pegged stablecoin on the TON blockchain, enhancing the UAE’s digital finance ecosystem.
- The UAE’s regulatory framework supports Tether’s dirham-pegged stablecoin, promoting secure and compliant digital currency initiatives.
Leading stablecoin issuer known for USDT, Tether, has advanced by revealing the release of its United Arab Emirates dirham-pegged stablecoin on The Open Network (TON) blockchain.
Revealed during Alessandro Giori, Tether’s senior strategic partnership manager, at the TON Gateway event in Dubai, this development fits Tether’s larger plan to increase its products in the Gulf region’s fast changing digital financial scene.
Earlier this year, Tether presented its proposal to create a digital UAE dirham representation entirely backed by local liquid reserves, working with the Phoenix Group and Green Acorn Investments, therefore ensuring stability and confidence.
Big News for the Middle East!
Tether has just unveiled a stablecoin pegged to the UAE Dirham (AED), launching on the $TON blockchain!
This new addition could redefine digital transactions in the region, bringing the benefits of blockchain—speed, transparency, and… pic.twitter.com/1iCtUYfQjz
— Proleo.io (@Proleo_io) November 1, 2024
TON Blockchain’s Role in Tether’s Dirham Stablecoin Launch
The choice to include this new stablecoin on the TON blockchain is noteworthy since it shows Tether’s attempt to make use of the scalability and efficiency of the blockchain Businesses looking for dependable digital payment options use the TON platform because of its ability to handle quick and flawless transactions.
With over 160,000 daily USDT transactions and 7.6 million wallets running on the blockchain, Giori underlined the growing activity on TON and the more than 100 crypto sites that use USDT based on TON. He also noted that USDT on TON is now available on Fireblocks, allowing more businesses to use the TON ecosystem.
The introduction of this dirham-pegged stablecoin fits the UAE’s proactive attitude toward regulation of cryptocurrency. The officials of the nation have been proactive, passing in June a licensing framework for stablecoins, including rules for monitoring, issuing, and licensing.
UAE’s Regulatory Support Boosts Stablecoin Innovation
Such policies offer the required regulatory clarity for stablecoin activities inside the area. This background has positioned the UAE as a major digital finance center, creating conditions fit for innovation and more general acceptance of cryptocurrency.
AED Stablecoin, a local issuer, confirmed in principle permission from the UAE’s central bank on October 18, underscoring the UAE’s dedication to regulated stablecoin acceptance. Should the company receive complete regulatory permission, it will open the path for a compliant dirham-backed digital currency in the area.
This step highlights Tether’s goal of satisfying the rising demand for localized digital assets, which can provide substitutes for dollar-based transactions and improve user financial flexibility both inside and outside of the UAE.
On the other hand, as we previously highlighted, Tether has worked with Turkey to tokenize its boron reserves, aiming to modernize the commodity trading system.
