Tether yesterday announced that it plans to launch a new stablecoin linked to the United Arab Emirates’ dirham.
The decision was made in response to the rising demand for the dirham and the company’s aim to offer alternatives to the commonly used US dollar.
Tether has made this strategic decision to increase liquidity in the cryptocurrency market and provide more options for traders.
This decision holds the potential to have a positive impact on the overall cryptocurrency ecosystem by drawing in more investors and businesses at a regional level.
Tether has stated that their Dirham-backed tokens will have a coverage ratio of 1:1, meaning that for every token in circulation, there will be an equivalent value of AED held in reserve. This strategy adheres to Tether’s standard for reserves.
