Welcome DRAM, the New Stablecoin Backed by the UAE Dirham – Coinpedia Fintech NewsOctober 2, 2023
DRAM is a new stablecoin pegged to the UAE Dirham, founded by former SoftBank executive Akshay Naheta.
DRAM targets the unbanked and underbanked populations, particularly in nations grappling with high inflation.
DRAM is expected to gain traction in the UAE.
As the world increasingly embraces US dollar-pegged stablecoins, Akshay Naheta, a former executive at SoftBank, is leading the charge with a unique stablecoin called DRAM, supported by the United Arab Emirates Dirham. This move comes in the wake of Paypal’s entry into the crypto market with its USD-pegged stablecoin PYUSD, which garnered significant support within the industry.
So, what is this new project all about? Let’s dive in.
Bucking the Trend
But what made this collaboration go against the market wave? With DRAM Trust, Naheta aims to tap into the growing stablecoin market, which analysts project to expand over 20X, reaching a value of $2.8 trillion in the next five years. DRAM coins are engineered to provide stability, particularly in nations grappling with high inflation, such as Turkey, Egypt, and Pakistan. The initiative primarily targets the unbanked and underbanked populations.
“Our main focus is the unbanked and underbanked in these nations. If you want to diversify your risk and be in a currency complementary to the dollar, a big percentage of money can move into this.”
Breaking the Mold
In contrast to many stablecoins typically pegged to the US dollar, DRAM sets itself apart by tethering its value to the Dirham. This stablecoin will be accessible on decentralized exchanges like Uniswap, Sushiswap, and Pancakeswap. Furthermore, the team plans to collaborate with centralized exchanges shortly.
An Eye on the Middle East
This groundbreaking project is expected to gain substantial traction in the UAE, thanks to its significant expatriate community and its proximity to regions with high inflation rates. The timing of this initiative coincides with a series of challenges faced by the US government, potentially leading to a government shutdown.
Such an event could favor the adoption of DRAM and trigger rapid adoption.
Also Read: US Government Shutdown Averted at the 11th Hour: Here’s What Happened!
Akshay Naheta’s venture reminds us of the growing influence of the UAE in the global financial landscape. He likens the nation’s role to that of Switzerland, citing its geopolitical neutrality, robust transportation infrastructure, and prominence as a top-tier tourism destination.
DTR, headquartered in the Abu Dhabi Global Market, is dedicated to democratizing finance through the development of digital financial technologies. The firm also has plans to introduce a decentralized wallet solution in early 2024, aiming to enhance the accessibility and functionality of digital tokens for a broader audience.
So, could DRAM be the next big thing in the world of cryptocurrencies? You tell us.
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