- 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, ‘DRAM’, through financial startup Distributed Technology Research Ltd (DTR).
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DRAM’s primary objective is to offer stability within nations grappling with rampant inflation, including Egypt, Pakistan, and Turkey. Naheta expressed the initiative’s core mission in impacting underserved financial markets, stating, “Our main focus is the unbanked and underbanked in these nations. If you want to diversify your risk and be in a currency that’s complimentary to the dollar, there’s a big percentage of money that can move into this.”
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 dirham’s stability as an alternative to the US dollar, Naheta added, “We’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“.
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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.
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