KEY FACT: Tether has revealed plans to launch a United Arab Emirates dirham-pegged stablecoin on The Open Network (TON) blockchain. This move, disclosed at Dubai’s TON Gateway event, builds on Tether’s earlier collaboration with Phoenix Group and Green Acorn Investments to create a stable digital dirham backed by local reserves. The choice of TON follows its swift adoption rate, with over a billion USDT transactions on TON in just six months. The UAE’s recent licensing framework for stablecoins adds further regulatory support to this innovation.

Tether’s senior strategic partnership manager, Alessandro Giori, at the TON Gateway event in Dubai. Source: The Open Network

Tether to Launch Dirham-Backed Stablecoin on TON Blockchain

Tether, the leading issuer of stablecoins, has announced the launch of a new digital currency pegged to the UAE’s dirham (AED) on The Open Network (TON) blockchain. Tether's senior strategic partnership manager, Alessandro Giori, disclosed this plan at Dubai’s TON Gateway event on November 1. The choice of TON blockchain is its swift adoption rate with record statistics as the fastest blockchain to reach 1 billion USDT since its launch.

The proposed Dirham-backed stablecoin launch was earlier announced by Tether on August 21, revealing the collaboration with the UAE’s Phoenix Group and Green Acorn Investments. The collaboration aims to establish a digital representation of UAE dirhams, fully backed by liquid UAE-based reserves. Tether has been growing its presence in the Middle East and this motivates the need for blockchain-based payment solutions in the region.

The dirham-pegged stablecoin is an important step for Tether’s expansion beyond traditional markets, which will cater to a growing demand for transparent, secure, and fast digital payment options in the United Arab Emirates and across the Gulf region. The dirham is a critical currency in the Middle East, where Dubai and Abu Dhabi have become global hubs for finance, technology, and crypto adoption. Tether's choice of the dirham as a backing currency also shows the growing trust and openness in the region toward blockchain innovations. The UAE government has proactively created a regulatory framework that supports digital assets, which encourages innovation by companies like Tether.

With the recent regulatory frameworks set to establish clarity and safety for stablecoins in the market, the UAE has positioned itself as a regional leader in blockchain and crypto adoption. In this environment, Tether’s AED-pegged coin will provide a solution that can potentially streamline cross-border transactions, payments, and remittances in a region where such services are in high demand.

TON is the fastest chain to reach 1 billion USDT. Source: TON

The decision to launch on TON, a high-performance blockchain initially developed by the messaging app Telegram, is a show of Tether’s confidence in the platform’s scalability, speed, and potential for reaching a large user base. TON has made headlines for its fast-growing user adoption, with Telegram’s active user base helping to boost engagement. The platform's advanced technology and low transaction fees make it attractive for launching stablecoins, especially in emerging markets like the UAE.

The AED-pegged stablecoin aims to facilitate efficient digital payments, remittances, and e-commerce in the UAE and the wider region. This stablecoin will also help bridge gaps between traditional financial systems and digital currencies, and allow for seamless transactions across platforms and countries.

The dirham-backed stablecoin has implications for both retail and institutional users. It could mean faster, more affordable cross-border transactions for retail consumers, especially within the Gulf region. The launch comes at a time when global demand for stablecoins is growing, as users and businesses seek alternatives to traditional banking for digital transactions.

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