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The cryptocurrency industry has witnessed a positive collaboration. Arab Financial Services (AFS) has partnered with Ternoa to promote cryptocurrency payments in the United Arab Emirates (UAE).
This alliance will leverage Athar, a decentralized consumer finance protocol. In fact, this platform is a secure and cost-efficient PayFi network designed to onboard billions of retail customers into cryptocurrency.
The main purpose of this joint effort is to simplify and secure crypto transactions for merchants and consumers in the Gulf Cooperation Council (GCC) region.
“Between July 2023 and June 2024, the UAE received over $30 billion in crypto, ranking the country among the top 40 globally,” a report by the New York-based blockchain analysis firm Chainalysis said in October. Additionally, both small and large retail crypto transactions saw increases exceeding 80%. This percentage indicates widespread adoption across various transaction sizes.
The cryptocurrency market in the UAE is on an upward trend. According to a Statista report, it will reach $254.3 million in revenue in 2025. Additionally, there will be an estimated 3.78 million crypto users with a user penetration rate of 39.13%.
Samer Soliman, CEO of AFS, commented on the collaboration: "AFS is committed to driving innovation in the payments industry and expanding access to seamless, secure, and future-ready solutions. By integrating stablecoins and decentralized finance, we are unlocking new possibilities for merchants and consumers across the UAE, paving the way for the broader adoption of digital payments in the region."
Mickael Canu, CEO of Ternoa, added: "The next big step for blockchain and digital finance is making it useful in everyday life. The payments and financial services industries are massive, and bringing them onto Ethereum will open up exciting new possibilities. Our partnership using Athar with AFS will make digital payments faster, more secure, and accessible."
Athar facilitates stablecoin payments at point-of-sale (PoS) terminals, which is a stable and secure alternative to traditional cryptocurrencies. This integration is expected to simplify crypto transactions with an aim to make digital assets more accessible for everyday use.
Arab Financial Services (AFS) has obtained a Retail Payment Services License – Category II from the Central Bank of the UAE. This license enables AFS to offer a comprehensive suite of payment services. These include the facilitation of stablecoin payments through its partnership with Ternoa.
This association's initial focus is to deploy Athar-powered crypto payment solutions for merchants across the UAE. The success of this initiative is anticipated to focus on expansion into other GCC countries to promote the adoption of digital payments in the region.
The Dubai Financial Services Authority (DFSA) has recognized USDC and EURC stablecoins. This has enhanced the regulatory framework for stablecoin payments in the region. This development will positively position AFS and Ternoa to introduce and manage stablecoin payment solutions within the UAE.
The collaboration between AFS and Ternoa will invite the evolution of digital payments in the UAE and the broader GCC region. This powerful initiative will address key challenges in crypto adoption, such as volatility and transaction complexity, which were looking impossible to manage before this partnership.
Once this project is initiated, the UAE will be able to lead other nations in attracting investment to the region's fintech sector.