In August 2023, Tether announced plans to launch a stablecoin pegged to the United Arab Emirates Dirham (AED), aimed at meeting the growing global demand for Gulf currencies and providing an alternative to the US dollar. This stablecoin will be fully backed by local liquidity reserves in the UAE and is being launched in collaboration with the blockchain company Phoenix Group, listed in Abu Dhabi, and investment company Green Acorn Investment. Currently, the project is awaiting approval from the Central Bank of the UAE, with licensing expected in the coming months.