Tether Issues Dirham-Pegged Stablecoin on the TON Blockchain
Tether, the world’s largest stablecoin issuer, plans to introduce a new UAE dirham-pegged stablecoin on The Open Network – TON blockchain. This strategic move is the first significant milestone of blockchain and crypto in the United Arab Emirates region. This will help enhance the digital finance atmosphere in this area more than ever.
This was announced during the TON Gateway Event held in Dubai.
The news was announced at the TON Gateway event in Dubai, where Alessandro Giori, Tether’s senior strategic partnership manager, mentioned not only the fast-developing TON blockchain, which reached a record one billion USDT transactions in just six months, but also how that speed is unparalleled, and it shows that TON may soon be a serious infrastructure for digital currencies and stablecoins.
A Partnership with UAE-Based Firms
The company teamed up earlier this year with Phoenix Group and Green Acorn Investments, both UAE-based firms, to back the stablecoin with liquid reserves based in the UAE. In that way, the new dirham-backed stablecoin will be fully backed and pegged to the value of the UAE dirham. This will offer a secure, stable digital representation of the dirham, hence benefitting businesses and people using digital assets within the UAE.
Exponential Growth of USDT on the TON Blockchain
Since Tether launched its USDT on the TON network, its performance has grown at an extraordinary pace. If Giori is to be believed, then more than 160,000 USDT transactions are made on TON every day, while 7.6 million wallets are holding USDT on the blockchain of TON. Notably, its infrastructure has already been integrated by over 100 cryptocurrency exchanges for USDT. Moreover, its blockchain can support the famous digital asset platform Fireblocks. In other words, all companies that utilize services provided by Fireblocks can easily access and operate USDT on TON and expand its reach further.
Stablecoin: The UAE Brings in Regulatory Support
The leadership of the UAE has been working on regulatory frameworks that oversee stablecoins, approving a licensing system earlier this year for the said class of digital assets. This regulatory clarity has cleared the path for Tether and other companies to operate with more certainty in the UAE market. Well, on October 18, an in-principle approval was granted to UAE-based issuer AED Stablecoin by the Middle Eastern country’s central bank.
The Future of UAE’s Stablecoins in Digital Finance
The good regulation achievements, along with the new stablecoin issued by Tether, make the UAE one of the most prospective and progressive heads in the field of blockchain technology and digital finance. This may lead to further adoption in this region by offering a stable and trusted digital asset for cross-border transactions and day-to-day digital payments.
