Stablecoins push their way as top cryptoasset backed by UAE investors
Amidt Bitcoin’s ongoing gold rush, stablecoins hold their own
Dubai: Cryptocurrencies are having a high wattage moment, with Bitcoin crossing $75,000 as soon as a win for Donald Trump became clear. The limelight is also being shed on stablecoins, which has been getting attention from UAE investors over the year.
Retail-sized transfers ($10K and below) accounted for 6% of stablecoin-backed values received in the UAE over the first sic months, while professional-sized ($10k to $1million), institutional-sized ($1million to $10million) and large institutional-sized ($10million and above) accounted for 40%, 34%, and 20%, respectively.
“It is important to note that in terms of volume of stablecoin transfers in the UAE, retail-sized transactions were by far the majority at 93%,” said a statement. “This indicates a highly active market for retail investors who are likely using stablecoins as a means to trade in and out of other virtual assets.”
The value of stablecoins received by services in the UAE totaled more than $9.8 billion, a 55% increase from a year ago.
Stablecoins now account for the largest share of crypto activity in the UAE (51%), with Bitcoin at 19% and Ether making up 9%.
“With the Central Bank of the UAE (CBUAE) releasing its Payment Token Services Regulation, which clarifies the rules for issuing, custodying and converting payment tokens, this would potentially pave the way for broader participation,” said Arushi Goel, Head of Middle East & Africa Policy at Chainalysis.