There are many cryptocurrencies out there, and while many types of tokens are being created every day, some types don’t get as much attention as the rest of the lot. Stablecoins are one of these coins. While other tokens, like meme coins, get made every day, stablecoins have not been that lucky, but now, someone has noticed.

More: Understanding Tether (USDT)

Tether, one of the largest companies in the digital asset industry, has announced that it will soon launch a new stablecoin. Unlike the company’s most popular product, USDT, this stablecoin will be pegged to the currency of the United Arab Emirates—the Dirham.

This new stablecoin project from Tether is in partnership with Phoenix Group PLC, one of the UAE’s multibillion-dollar tech conglomerates, and with support from Green Acorn Investments Ltd.

Tether is no stranger to stablecoins; the company has been responsible for stablecoin offerings like the world-famous USDT, EURT, CHNT, MXNT, XAUT, and aUSDT. While some may call Tether a one-hit wonder because USDT is the most successful stablecoin in the bunch, the company is looking to make a comeback with the new Dirham-pegged coins.

According to Tether CEO Paolo Ardoino, the main purpose of the company’s latest stablecoin launch is to create an optionality toward the U.S. dollar. Ardoino also seems to believe that the Dirham would become a preferred currency as global trade shifts. The extent to which that is hype talk for the new product is not clear, but the Dirham is also one of the strongest currencies in the world.

Ardoino has said that the company has seen a lot of interest in holding AED (Dirham) outside of the UAE. The stability and safety of the country and its balance sheet are motivations for creating the new stablecoin, not to mention the fact that the Dirham is also pegged to the U.S. dollar.

While the new stablecoin has not been given a name yet, it’s not a secret that perhaps no company is better poised to handle such a project than Tether. Tether’s prized product, the USDT, is the largest stablecoin, with a market value of $117 billion. The entire stablecoin industry is worth $150 billion, which says much about Tether. 

Related: UAE Residents Are Finally Able To Trade Crypto Directly With Bank Accounts

Seyed Mohammed Allzadehfard, Co-Founder and Group CEO of Pheonix Group, the third company involved in this project, believes that by 2028, the Stablecoin industry will be worth $150 billion. While that is a bold statement, this latest addition will probably be one of the driving forces in getting the industry there. 

There are still many updates to come about the stablecoin, but Tether has said that the Dihram stablecoin would be fully backed by liquid UAE-based reserves. Other details, such as the stablecoin's name or launch date, will be communicated later, but as always, we will be on the lookout. 

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