A former MIT graduate and SoftBank executive has launched a dirham-backed stablecoin aimed at giving countries suffering from high inflation environments exposure to assets linked to the UAE’s local currency.
Cointelegraph caught up with Akshay Nahita, founder and CEO of Distributed Technology Research (DTR), following advertisement The DRAM stablecoin was listed on DeFi protocols Uniswap and PancakeSwap on October 3.
The Abu Dhabi-based company has been developing the technology for a dirham-backed stablecoin since October 2022. Nahita has essentially restarted DTR in the jurisdiction, which he helped establish in Switzerland in 2019.
DRAM is an Ethereum ERC-20 token issued by the DRAM Trust. The organization is a fund governed by Hong Kong law, while the independent custodian responsible for approving token mints and burns is said to be licensed and regulated under the Hong Kong Monetary Authority.
Currently, DTR cannot offer DRAM in Hong Kong or within the UAE, but Naheta notes that talks are ongoing to provide token liquidity for listing on centralized exchanges outside of these two jurisdictions.
Regulatory parameters require fiat dirham reserves to be deposited before any DRAM tokens can be minted, as reserves are said to be held by regulated financial institutions.
The DRAM website also provides links to stablecoin smart contract addresses Ethereum, BNB Bank And Arbitration. The ETH token contract reflects a maximum total supply of 2 million DRAM at the time of publication, while the ARB contract reflects 499,999 DRAM and the BNB contract holds 2.5 million DRAM.
Background research conducted by Cointelegraph revealed the previous launch of distributed technology research in Switzerland four years ago.
The Foundation continued to develop the decentralized payments system It is called the electronic unitwhich was designed and building By a group of academics and developers through partnerships and grants with top-ranking academic institutions including Stanford University, MIT, and the University of Illinois.
Cointelegraph has established that Naheta co-founded DTR during his tenure at SoftBank. DTR’s Unit-e project was a scalable decentralized payments network It was built by a Berlin-based company Development team.
“The original ambition in 2019 was also to disrupt payments and create a protocol that would have very high throughput with great cost efficiency.”
Naheta fully shared details of the company’s efforts in its “previous incarnation”. summary From the electronic unit protocol reviewed by researchers from the University of Illinois. The team now building the DRAM stablecoin includes a team of around 30 permanent employees and contractors.
Nahita said that although DTR will not be able to market DRAM in the UAE, the company expects demand from companies in the region suffering from high inflation rates and currency problems:
“The link to the UAE Dirham was driven by the strong performance and attractiveness of the UAE economy and the desire for stable digital asset investment options across this region.”
The UAE is emerging as a hub for emerging cryptocurrencies and the broader Web3 space due to favorable regulatory frameworks aimed at promoting financial innovation and adoption of digital assets.
The likes of Coinbase and other major exchanges have been speaking publicly about future operations within the jurisdiction while industry heavyweight Binance is already operating in Dubai.
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