Distributed Technologies Resources (DTR), a Swiss-based blockchain firm, has launched DRAM, a Dirham-backed stablecoin, on October 3, 2023. According to Akshay Naheta, founder and former SoftBank executive, the tokenized fiat version of the UAE’s national currency will enable users to transfer value across borders without difficulty. DRAM has been listed on Uniswap and PancakeSwap using the Binance Coin (BNB) pair.
Naheta shared that the project had been in stealth mode for the past 10 months prior to its launch. The stablecoin was developed by Dram Trust based in Hong Kong, unfortunately, it will not be accessible to UAE and Hong Kong citizens. Nonetheless, there are discussions with other countries to provide direct liquidity to their centralized crypto operations. As with other stablecoins, DRAM is ERC-20 token, meaning it can be exchanged one-for-one for a Dirham.
The UAE government has been working on launching a central bank digital currency (CBDC). Last March 15, 2023, the government and the Reserve Bank of India (RBI) signed an MOU to create a CBDC bridge in order to facilitate value exchange and remittances between the two nations.
DTR’s journey so far has been limited. It started operations in 2019 and created a decentralized payment platform called Unit-e. The project attracted a lot of researchers from Stanford University, MIT, and the University of Illinois, but it did not gain enough appeal. This experience led DTR to focus on a service that is in demand and works efficiently.
Naheta explained that the UAE’s fiat currency was chosen for its strong economy and the increasing interest in stable, digital asset investment options in the region. The country is also a growing blockchain and financial hub, with the Virtual Asset Regulatory Authority (VARA) providing a safe haven for crypto businesses.
According to a report from Chainalysis, crypto adoption in the UAE has seen a sharp rise in the past year. The country ranks second in decentralized exchange (DEX) activity, next only to Israel.
Overall, DRAM’s launch is further proof of the UAE’s growing blockchain ecosystem, providing users with a viable alternative to traditional transactions.
