A former graduate of MIT and a former executive at SoftBank have introduced a stablecoin backed by the Dirham, with the goal of offering exposure to assets tied to the native currency of the United Arab Emirates in nations facing rampant inflation.
Cointelegraph recently spoke with Akshay Naheta, the founder and CEO of Distributed Technologies Research (DTR), following the launch of the DRAM stablecoin, which was listed on Decentralized Finance platforms Uniswap and PancakeSwap on October 3.
The company, based in Abu Dhabi, has been working on the technology behind a Dirham-backed stablecoin since October 2022. Naheta effectively reestablished DTR in this jurisdiction, which he had a hand in founding in Switzerland back in 2019.
The DRAM contract listed on Uniswap on Oct. 3. Source: Uniswap.
DRAM is an Ethereum-based ERC-20 token issued by DRAM Trust. The organization operates under Hong Kong law, with an independent trustee responsible for approving token creation and burning, duly licensed and regulated by the Hong Kong Monetary Authority.
At present, DTR is unable to offer DRAM in Hong Kong or within the United Arab Emirates. However, Naheta indicates that discussions are ongoing to facilitate token liquidity and potential listings on centralized exchanges beyond these two jurisdictions.
Compliance with regulatory standards dictates that Dirham fiat reserves must be deposited before any DRAM tokens can be created, with these reserves reportedly being held by regulated financial institutions.
The DRAM website also provides links to the stablecoin’s smart contract addresses for Ethereum, BNB, and Arbitrum. At the time of this publication, the ETH token contract specifies a maximum total supply of 2 million DRAM, while the ARB contract indicates 499,999 DRAM, and the BNB contract holds 2.5 million DRAM.
Cointelegraph’s investigation revealed the previous launch of Distributed Technologies Research in Switzerland four years ago. The foundation proceeded to develop a decentralized payments system called Unit-e, created through partnerships and grants with prominent academic institutions like Stanford, MIT, and the University of Illinois, with contributions from academics and developers.
Naheta’s involvement in founding DTR during his tenure at SoftBank was also confirmed by Cointelegraph. DTR’s Unit-e project represented a scalable decentralized payments network developed by a Berlin-based development team.
Naheta shared insights into the company’s previous endeavors in a comprehensive summary of the Unit-e protocol reviewed by researchers at the University of Illinois. The team responsible for building the DRAM stablecoin now comprises approximately 30 permanent staff and contractors.
Although DTR cannot actively market DRAM within the UAE, the firm anticipates demand from businesses in the region contending with high inflation and currency challenges. Naheta explained that the connection to the Dirham was established due to the robust performance and appeal of the UAE’s economy and the demand for stable, digital investment options in the region.
The United Arab Emirates is swiftly becoming a focal point for the emerging cryptocurrency and broader Web3 landscape, thanks to its favorable regulatory framework designed to nurture financial innovation and digital asset adoption. Notably, major exchanges like Coinbase have openly discussed potential future operations in the jurisdiction, while industry leader Binance is already operational in Dubai.