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Tether Partners with Reelly Tech to Boost USDT Adoption in UAE Real Estate; Surge in Stablecoin Inflows Signals Market Shifts

16 hours ago
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Tether, the issuer of the world’s largest stablecoin, USDT, has signed a Memorandum of Understanding (MoU) with Reelly Tech, a leading real estate B2B platform in the UAE.

This partnership will enable more than 30,000 local and international agents using the Reelly Tech platform to transact in USDT, part of a broader effort to make the stablecoin more useful outside of its traditional, closed-loop stablecoin utility. These agents might be using USDT as a payment method for virtual real estate. As concerns about the USDT’s backing persist, a major testing ground for the stablecoin’s utility is shaping up in the UAE real estate market.

Simultaneously, this week has been a giant uptick in activity for stablecoins, anchored by a jaw-dropping $2.72 billion USDT being ushered into exchanges. This massive amount arriving on exchanges has sparked a whole lot of excitement in the market as it has sent everyone’s imaginations running with what might be happening here. Could this be an enormous prep for a market move that folks seem to love using USDT for? Could this be pre-leveraging? Could this be something much, much bigger?

A Strategic Partnership with Reelly Tech to Expand USDT Usage

Tether’s agreement with Reelly Tech is an important step for USDT in moving into new territory. Most of the time, USDT (and the other stablecoins) are used in the same context as Bitcoin and other cryptocurrencies: that is, in trading on or between exchanges. The deal between Tether and Reelly Tech is focused on using USDT, and by extension Tether’s other products, as a way of paying for real estate in the UAE. By getting into that market, Tether is clearly attempting to push USDT into a new context, where it can pay for things, into an area where people before had only used fiat currency.

Reelly Tech, a leading real estate platform with a strong foothold in the UAE, will now enable over 30,000 agents to use USDT for real estate transactions—buying, selling, and leasing—in that nation. This is expected to speed up such transactions, limit the problems associated with converting one currency to another, and improve the transparency of these often murky deals. For agents and clients, the stablecoin’s use could simplify account funding, especially when dealing with international transactions or using a stablecoin to pay for a high-value asset in a high-inflation environment.

As the UAE sets itself up as a global center for the adoption of cryptocurrency, the partnership between Tether and Reelly Tech takes us a step further toward marrying the Blockchain and digital asset world with traditional sectors. And we should pay particular attention to this collaboration because, guess what? It’s real estate that really stands to gain from this partnership. USDT’s stability, alongside its widespread use across crypto exchanges, presents a solution that could very well make property deals involving both domestic and international investors as straightforward as local governance will allow.

Record Stablecoin Inflows: A Sign of Market Sentiment

This week saw the titanic transfer of $2.72 billion USDT to exchanges that in turn established the largest net inflow of stablecoins since 2022. This inflow is all the more interesting when you consider it in the context of the recent market downturn, which had us liquidating across the crypto space. What does it mean? Well, one theory is that we traders are using stablecoins like USDT as collateral to protect ourselves on the not-so-leveraged side of the crypto-i-melt-down. Or alternatively, maybe we’re portending another market move, which could be either up or down from here.

The inflow coincides with a wider pattern of market instability. As prices across the cryptocurrency market fluctuated sharply, many investors likely moved their assets into stablecoins to mitigate risk. In the face of volatile market swings, stablecoins like USDT provide a safe haven—liquid and valuing-preserving. They are a risk-off asset. Status as a risk-off asset is especially important during times of liquidation, when prices are dropping precipitously, because “Investors who might have otherwise been panic-selling…could have been moving into USDT instead.”

The recent inflow of stablecoins to exchanges may be a sign that market participants are preparing for the next move, big or otherwise. This is exactly what you’d expect in uncertain times, when traders are turning over their portfolios but also taking a more strategic and less reactive path. The last couple of weeks have seen a blend of profit-taking and precautionary moves into cash in the wake of a sharp downturn.

Implications for the Broader Crypto Market

The inflow of stablecoins and Tether’s increasing adoption in the real estate sector both reflect the overarching trends shaping the cryptocurrency world. Stablecoins—especially USDT—are rapidly establishing themselves as a vital part of the financial ecosystem. They are providing on-ramps and off-ramps to the ecosystem for traders and businesses, representing the sort of stability one might associate with the U.S. dollar. And as Tether continues to find use cases outside of crypto itself, its aspirations to serve as a global bridge between the financial world and the crypto world become even more evident.

Furthermore, the arrival of USDT to the exchanges indicates that the market may be on the brink of some volatility or dislocation. While inherently risky, the realm of cryptocurrencies contains within it a certain level of expectedness; prices may go up or down, but they go in those directions for reasons that knowledgeable market players understand and can articulate. What these stablecoin trades suggest, then, is that our market is currently not at a place where knowledgeable players expect a series of articulated reasons to underpin what price changes might occur.

Stablecoins serve a larger purpose; they are pointedly steering the global economy in the direction of an integrated blockchain and cryptocurrency future. They do so because they have a clearly defined function: to exist as reliable mediums of exchange. And in the integrated global economy, there is no more reliable a medium of exchange than the U.S. dollar, which sheds light on why U.S. dollar-pegged stablecoins, like Tether, dominate the marketplace.

Conclusion

Tether, through its MoU with Reelly Tech, marks a very big deal going well past just cryptocurrency and into USDT’s presence in real estate—one of the key sectors of the traditional economy. This isn’t USDT’s first venture into brick-and-mortar territory, though, as it had already signaled its intentions to move in that direction by bringing on former live-real-estate auctioneer Patrick O’Hare as its chief business development officer in late 2022. Meanwhile, inbound stablecoin liquidity to crypto exchanges continues to increase. Beyond what seems like an inevitable trend toward more crypto-market infrastructure being built out, this raises another interesting question: What, exactly, is USDT’s role in this newfound liquidity?

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Source: https://nulltx.com/tether-partners-with-reelly-tech-to-boost-usdt-adoption-in-uae-real-estate-surge-in-stablecoin-inflows-signals-market-shifts/