Tether Pursues a Potential Cryptocurrency Venture, Introducing a Stablecoin Connected to the United Arab Emirates' Dirham
Tether, the leading stablecoin issuer, has announced plans to launch a stablecoin pegged to the United Arab Emirates dirham (AED). The move is seen by Tether CEO Paolo Ardoino as an attempt to create "optionality towards the US dollar".
The UAE's ADI Foundation, which is working on an AED-backed stablecoin in collaboration with key UAE institutions, is actively advancing the project. A public testnet was launched in August 2025.
The potential benefits of launching a dirham-pegged stablecoin include enhanced digital payments infrastructure, increased regulatory compliance and trust, facilitating broader adoption of blockchain in governmental and financial services, boosting regional fintech innovation and inclusion, and streamlining international trade and remittances.
The stability of the UAE and its currency is cited as potential key drivers of demand for the new stablecoin. Cryptocurrency payments are already enabled in areas like real estate and school fees in the UAE, which has accelerated the adoption of crypto in the region.
Tether's recent investments and product launches, such as a $200 million investment in biotech startup Blackrock Neurotech and a $100 million placement into Bitcoin mining company Bitdeer, are part of its strategy to diversify and expand into new markets. The new stablecoin will be launched in partnership with the Abu Dhabi-listed crypto-mining and blockchain conglomerate Phoenix Group and investment firm Green Acorn Investment.
Tether already offers a variety of stablecoins, including the USDT, stablecoins pegged to the euro, the Chinese yuan, the Mexican peso, and gold. The AED stablecoin will complement financial ecosystem growth in the UAE by providing a fiat-pegged digital asset native to the region. According to Ardoino, the UAE dirham has the potential to become a dominant currency "as global trade shifts".
Finance news highlights the launch of a new stablecoin, the AED-pegged stablecoin by Tether, in partnership with the Abu Dhabi-listed Phoenix Group and Green Acorn Investment. This move is seen as a strategy for Tether to diversify and expand into new markets. In technology, the potential benefits for this stablecoin include enhanced digital payments infrastructure, increased regulatory compliance, and facilitating broader adoption of blockchain in governmental and financial services, among others. Concurrently, the UAE's ADI Foundation is working on an AED-backed stablecoin, aiming to boost regional fintech innovation and inclusion and streamline international trade and remittances.
