Following the introduction of the recent Payment Token Services Regulation by the Central Bank of the United Arab Emirates (CBUAE), which restricts retail payments to tokens pegged to the UAE Dirham, Tether.io and Phoenix Group, supported by Green Acorn Investments Ltd, are set to launch the first stablecoin pegged to the United Arab Emirates dirham (AED).

The stablecoin is built on a state-of-the-art blockchain, and aims to offer a reliable store of value and an efficient transactional tool for businesses and individuals in the UAE. It will enable secure and efficient cross-border payments and trading.

The launch of Tether's Dirham-pegged stablecoin represents a key development within a broader, interconnected ecosystem that is rapidly evolving. Within this ecosystem, digital assets are becoming increasingly integral to the financial infrastructure of the UAE.