Enterprises Declare their Intention to Introduce a Cryptocurrency Backed by the Dirham -

Phoenix Group, a company listed on the Abu Dhabi Securities Exchange, and Tether, a provider of digital assets, announced on Wednesday that they would be launching a stablecoin linked to the dirham.

The coin’s introduction aims to take advantage of the stability of the UAE currency and tap into the $150 billion global stablecoin market, which is expected to grow to $2.8 trillion by 2028. Stablecoins, a particular kind of cryptocurrency, are linked to other asset classes like gold and stable currencies to maintain a consistent and stable value. The most widely used stablecoins are fiat-backed ones, linked to fiat currencies like the US dollar and cryptocurrency backed by gold. One of the most dependable currencies in the world is the dirham, which is fixed to the US dollar due to the UAE’s substantial sovereign wealth funds.

Co-founder and group CEO of Phoenix Group Seyed Mohammad Alizadehfard expressed confidence in the dirham-pegged stablecoin’s ability to revolutionise the digital economy for users in the region and beyond. Our partnership with Tether demonstrates our commitment to excellence and innovation and our commitment to offering financial solutions that satisfy our clients’ needs. He claimed that Abu Dhabi is the ideal starting point because of its progressive views on blockchain, digital assets, and innovation.