#AbuDhabiStablecoin Tether, the issuer of the widely used USDT stablecoin, announced plans in August 2024 to launch a new stablecoin pegged to the United Arab Emirates dirham (AED). This initiative aims to meet the growing demand for the Gulf currency and provide an alternative to the U.S. dollar in global trade. The dirham-backed stablecoin will be fully backed by liquid UAE-based reserves and is being developed in collaboration with Abu Dhabi-listed Phoenix Group and investment firm Green Acorn Investment. The launch is pending approval from the UAE Central Bank, which is expected to take a few months.

The UAE has been proactive in adopting cryptocurrency, enabling crypto payments in sectors like real estate and education, and developing virtual asset regulations in both Abu Dhabi and Dubai. Tether's move aligns with the UAE's ambition to become a global hub for the crypto industry.