Phoenix Group PLC, a major player in the tech industry and listed on the Abu Dhabi Securities Exchange (ADX), has announced a partnership with Tether, a leading company in the digital asset space. Together, they plan to introduce a new stablecoin that will be tied to the value of the United Arab Emirates Dirham. This project is also supported by Green Acorn Investments Ltd.
With the stablecoin market currently valued at $150 billion and projected to soar to $2.8 trillion by 2028, this initiative is set to significantly impact the digital assets market by offering a stable and secure digital currency.
By anchoring the stablecoin to the UAE Dirham, one of the world's most stable currencies, the partnership aims to connect traditional finance with the digital economy, providing a reliable option for investors, businesses, and consumers who seek stability in the often volatile world of cryptocurrency.
The new stablecoin will be developed on an advanced blockchain platform, ensuring top-notch security, transparency, and efficiency. Backed by the financial and technological expertise of Phoenix and Tether, and adhering to strict regulatory standards, this stablecoin is designed to offer a safe haven for assets in a frequently unpredictable market.
"We are excited to collaborate with Tether to bring a UAE Dirham-pegged stablecoin to the market, confident in its potential to transform the digital economy for users in the region and beyond,"
Seyed Mohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group.
"This partnership not only highlights our commitment to innovation but also reflects our dedication to offering financial solutions that meet our customers' needs. Abu Dhabi’s progressive approach to blockchain and digital assets makes it the ideal launchpad for this project."
The Dirham-pegged stablecoin is expected to be available worldwide, deeply rooted in the UAE’s economic strength and stability. Aiming to enable seamless transactions, reduce foreign exchange risks, and provide a dependable store of value, this collaboration enhances business operations and creates new growth opportunities in the digital era.
According to Farah Zafar, Managing Director and Group Chief Legal Officer, he said
"The UAE is leading the way in digital currencies and financial innovation, and this partnership with Tether to create a Dirham-pegged stablecoin demonstrates our commitment to advancing the digital economy," said Farah Zafar, Managing Director and Group Chief Legal Officer. "We are excited to be part of this groundbreaking initiative that will reshape the global digital assets landscape."
The UAE government's strong and forward-looking regulatory environment, along with the rapid adoption of cryptocurrencies, complements Phoenix Group's ongoing commitment to fostering innovation within the crypto space. The supportive regulatory framework has paved the way for this partnership, reinforcing the UAE's status as a global leader in the emerging digital economy and showcasing the importance of progressive regulatory approaches in shaping the future of finance.
In the words of CEO of Tether, Paolo Ardoino, he said,
"We are pleased to announce the development of Tether’s Dirham-pegged stablecoin, adding to our range of stablecoin options," said Paolo Ardoino, CEO of Tether. "The United Arab Emirates is becoming a key global economic hub, and we believe our Dirham-pegged token will be a valuable and versatile tool for businesses and individuals, whether for cross-border payments, trading, or diversifying digital assets."
What does this mean for the MENA Region?
This partnership between Phoenix Group and Tether to launch a UAE Dirham-pegged stablecoin marks a significant milestone for the MENA region. It reinforces the region's growing role as a leader in the global digital economy, offering a secure and stable digital currency backed by one of the world's most reliable currencies.
This initiative is expected to drive financial innovation, enhance cross-border transactions, and attract more investment in blockchain technology. It also positions the MENA region as a key player in shaping the future of finance, bridging the gap between traditional and digital economies.
About Phoenix Group:
Phoenix Group, a multi-billion-dollar tech leader based in the UAE, is at the cutting edge of the blockchain, crypto, and tech sectors, pushing innovation to new heights. Founded in 2017 by Bijan Alizadeh Fard and Munaf Ali, Phoenix Group has grown into a powerful conglomerate with a range of successful businesses. Their influence extends beyond the web3 world, offering comprehensive solutions and operating a 765MW mining operation. Through strategic partnerships and a commitment to innovation, they continue to drive growth.
Phoenix Group runs multiple mining facilities across the US, Canada, CIS, and the UAE. Each of their companies specializes in one of four key areas: Mining, Hosting, Trading, and Investments.
Phoenix Group PLC is the first crypto and blockchain conglomerate in the region to be listed on the Abu Dhabi Securities Exchange. They also operate the largest mining farm in the MENA region. M2 is one of the key verticals within Phoenix Group.
About Tether and USD₮:
Tether is a trailblazer in stablecoin technology, dedicated to transforming the global financial system. With a mission to provide secure, efficient, and accessible financial, communication, and energy infrastructure, Tether is committed to enhancing financial inclusion, fostering economic growth, and empowering both individuals and businesses.
As the creator of the largest, most transparent, and liquid stablecoin in the industry, Tether is focused on building sustainable and resilient infrastructure to benefit underserved communities. By utilizing cutting-edge blockchain and peer-to-peer technology, Tether is bridging the gap between traditional finance and the emerging world of decentralized finance.
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