It was announced at the TON Gateway event in Dubai that a Dirham-pegged stablecoin would come, and indeed now it is a very important part of the expansion into the Middle East region amid rising demands for digital assets linked to their local currencies. Tether’s senior strategic partnership manager, Alessandro Giori, highlighted TON’s rapid growth and its suitability for hosting Tether’s latest addition to its lineup of currency-backed stablecoins.

Strengthening Tether’s Presence in the Middle East

The launch of Tether’s Dirham-pegged stablecoin reflects the company’s commitment to serving diverse economic regions with stable digital options. Earlier this year, Tether formed a collaboration with Phoenix Group and Green Acorn Investments to establish a stablecoin backed by the Dirham, with reserves maintained in the UAE. This partnership underscores Tether’s strategy of localized stablecoin offerings to promote digital asset adoption in key emerging markets. The Dirham-backed token is fully pegged to the value of the AED, ensuring stability and confidence for users across the UAE.

Source: X

Known for its scalability and efficiency, the TON blockchain is designed to handle high transaction volumes, making it an ideal platform for the Dirham-pegged stablecoin. Since USDT launched on TON in April, the blockchain has witnessed rapid adoption, reaching one billion USDT within six months—the fastest growth on any blockchain hosting USDT. Currently, TON records around 160,000 USDT transactions daily, with 7.6 million wallets actively using USDT. Over 100 crypto platforms have integrated USDT on TON, highlighting the blockchain’s popularity and reliability.

UAE’s Regulatory Landscape: How It Will Affect Tether’s Expansion

Tether’s move comes in line with the UAE’s proactive stance on digital assets. Recently, the UAE’s central bank greenlit a licensing framework for stablecoins, which brought clarity to the issuance and regulation of tokens backed by local currency. Such regulatory advances solidify the UAE’s standing as a global hub for Web3 innovation and a magnet for international interest among blockchain companies. In October, AED Stablecoin, another UAE-based stablecoin issuer, received preliminary approval from the central bank, signaling robust support for digital assets in the region. This could be a key determinant in accelerating the pace of adoption for Tether’s dirham-pegged stablecoin.

With the AED-pegged stablecoin, Tether aims to meet the current and exponentially increasing demand for trustworthy digital money in the UAE, the country taking its first steps into becoming one of the fastest-adopting blockchain countries. The stability provided by Tender’s new dirham-backed asset makes the asset suitable for those avoiding the volatility associated with cryptocurrencies. This could further develop a secure and efficient environment for digital transactions throughout the UAE and beyond its borders, which would encourage individuals and businesses to adopt digital assets.

Tether’s Strategic Goals and Broader Market Implications

Although there are still regulatory challenges in areas such as the European Union, opening up the Middle East offers a very desirable market segment. The dirham-pegged stablecoin is representative of Tether’s larger ambition of variable regional currency-backed assets with reduced reliance on the traditional USD-backed stablecoin. This form of strategic shift on Tether’s part reflects the demand for an inclusive financial system, which is majorly desired for emergent markets as the value of currency stability grows.

The introduction of Tether’s dirham-pegged stablecoin on the TON blockchain will be a significant development in its roadmap, as well as the UAE’s digital finance landscape. Powered by TON’s robust blockchain infrastructure, the new stablecoin from Tether is poised to make digital finance easier, faster, and more secure in the UAE. Such a Tether asset would further set a precedent for the Middle East in getting to a fully digital economy, with the firm still expanding its roster of currency-pegged stablecoins.

Tether Mints $1B USDT as Bitcoin Soars

Tether (USDT) Price Chart. Source: Brave New Coin

Tether recently issued a massive $1 billion in USDT, marking its largest stablecoin mint since September. This surge suggests heightened market interest, especially as Bitcoin approaches its previous all-time high. Tether’s rival, Circle, has also been minting USDC, albeit in smaller amounts, adding $250 million since October 29. Just before Tether’s issuance, Circle created an additional $170 million in USDC. Over the past three days, approximately $1.42 billion in stablecoins have entered the market, potentially signaling rising demand and liquidity.