The stablecoin DRAM, developed by Distributed Technologies Research, is now available on Uniswap.

The stablecoin DRAM, developed by Distributed Technologies Research, is now available on Uniswap.

The Emergence of Dirham-Backed Stablecoin in the Blockchain Industry

In a bid to provide exposure to assets linked to the United Arab Emirates’ native currency and address inflationary issues in certain countries, a former MIT alumnus and SoftBank executive has launched a Dirham-backed stablecoin. This stablecoin, known as DRAM, aims to offer digital asset investment options to countries grappling with high inflation environments.

Distributed Technologies Research (DTR), founded by Akshay Naheta, is the company behind the development of the technology for the Dirham-backed stablecoin. Naheta had previously co-founded DTR in Switzerland in 2019 but has now rebooted the company in Abu Dhabi. The company has been working on the Dirham-backed stablecoin since October 2022, with the intention of providing a solution for countries plagued by high inflation.

DRAM is an Ethereum ERC-20 token issued by DRAM Trust, a Hong Kong law governed trust. The organization operates under the regulation of the Hong Kong Monetary Authority, ensuring compliance and trustworthiness. It is important to note that at present, DTR cannot offer DRAM in Hong Kong or within the United Arab Emirates. However, conversations are ongoing to enable token liquidity on centralized exchanges outside of these jurisdictions.

Regulatory parameters dictate that Dirham fiat reserves must be deposited before any DRAM tokens can be minted. These reserves are held by regulated financial institutions, adding an extra layer of security and stability to the stablecoin. This ensures that the value of DRAM is backed by real-world assets, providing stability and confidence to investors.

To facilitate the use of DRAM, the stablecoin’s website provides links to its smart contract addresses for Ethereum, BNB, and Arbitrum. These contracts reflect the total supply of DRAM tokens available on each platform. Currently, the Ethereum contract has a maximum total supply of 2 million DRAM, the ARB contract reflects 499,999 DRAM, and the BNB contract holds 2.5 million DRAM.

DTR’s previous venture, Distributed Technologies Research, gained recognition through the development of the Unit-e protocol. This decentralized payments system was designed and built by a team of academics and developers in collaboration with prestigious institutions such as Stanford, MIT, and the University of Illinois. The Unit-e project aimed to disrupt payments by creating a protocol with high throughput and cost efficiency.

With the introduction of the DRAM stablecoin, DTR aims to address the demand from companies in regions like the UAE, where high inflation and currency issues are prevalent. The link to the AED (Dirham) is driven by the strong performance and attractiveness of the UAE economy and the need for stable, digital assets as investment options in the region.

The UAE has positioned itself as a hub for the nascent cryptocurrency and Web3 space by fostering favorable regulatory frameworks for financial innovation and the adoption of digital assets. Major players like Coinbase and Binance have expressed interest in operating in the jurisdiction, attracted by the supportive business environment.

The introduction of the Dirham-backed stablecoin not only provides a solution for countries struggling with inflation but also highlights the potential for blockchain technology to overcome existing financial challenges. By providing exposure to assets linked to a stable currency, like the Dirham, the blockchain industry continues to push the boundaries of financial inclusivity and stability.

In conclusion, the launch of the DRAM stablecoin marks a significant milestone in the blockchain industry, showcasing the potential for blockchain technology to revolutionize traditional financial systems. The Dirham-backed stablecoin provides countries with high inflation environments the opportunity to access stable digital assets and mitigate the effects of inflation. With the ongoing growth and development of the blockchain industry, we can expect to see more innovative solutions like DRAM emerge to address real-world financial challenges.