New UAE Stablecoin Targets Inflation and UnderBanked Markets

The stablecoin will be backed by the dirhamโ€™s equivalence to the dollar, and promote stability within the industry.

Akshay Naheta on the blueprints of UAE's digital currency future plans.
Created by Kornelija Poderskytฤ— from DailyCoin
  • A former SoftBank executive has launched the UAE Dirham-backed stablecoin.
  • The launch is made in partnership with a Hong Kong Trust.
  • The new stablecoin will target inflationary pressures on nations.

Stablecoins are a vital part of the blockchain ecosystem, fostering global financial inclusion and enhancing accessibility in the cryptocurrency industry.

While most have been pegged to the US dollar, the industry is experiencing a notable shift with the launch of a new stablecoin backed by the United Arab Emirates local currency, Dirham. 

New DRAM Token

According to a Bloomberg report, former SoftBank Group Corp. executive Akshay Naheta has announced the introduction of a new stablecoin initiative, โ€˜DRAMโ€™, through financial startup Distributed Technology Research Ltd (DTR).

Sponsored

DRAMโ€™s primary objective is to offer stability within nations grappling with rampant inflation, including Egypt, Pakistan, and Turkey. Naheta expressed the initiativeโ€™s core mission in impacting underserved financial markets, stating, โ€œOur main focus is the unbanked and underbanked in these nations. If you want to diversify your risk and be in a currency thatโ€™s complimentary to the dollar, thereโ€™s a big percentage of money that can move into this.โ€ 

The DRAM stablecoin will be licensed to the Hong Kong-based Trust, which will safeguard the reserves backing the token. Each DRAM token will be backed by 3.6725 dirhams in equivalence to $1, with a total value of $10 million upon initial issuance.

Emphasizing the dirhamโ€™s stability as an alternative to the US dollar, Naheta added, โ€œWe’ve linked it to the dirham as opposed to any other currency because it’s (UAE) a very stable and growing economy, it’s attracting a lot of talent and has become among the biggest financial hubs of the world“.

Naheta stated that users can access DRAM on decentralized exchanges including Uniswap and Sushiswap upon launch, outlining plans for collaboration with centralized exchanges to promote accessibility.

Discover the latest on insecurity in the cryptocurrency industry and prominent Lazarus hacker group: 
New Lazarus Group Malware Threat Places Crypto On High Alert 

Read more on the growing expansion of the cryptocurrency industry in the UAE:
Bitay Exchange Taps into UAEโ€™s Burgeoning Crypto Market 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace is a crypto reporter for DailyCoin, covering a diverse range of market updates. Grace has minor holdings in Bitcoin & Solana, and moderate holdings in Rune & XRP.

Read more