Blockchain innovation continues to reshape the financial landscape, with Swiss-based Distributed Technologies Resources (DTR) unveiling its latest creation — the Dirham-backed stablecoin known as DRAM. This token, a fiat equivalent of the United Arab Emirates (UAE) national currency, was officially launched on October 3, 2023.
Borderless Transactions Made Easy
Founder Akshay Naheta, a former SoftBank executive, envisions DRAM as a catalyst for seamless cross-border transactions. The stablecoin has now found a home on popular decentralized exchange platforms Uniswap and PancakeSwap, utilizing the Binance Coin (BNB) pair.
Stealth Mode Unveiled
Naheta reveals that the DRAM project has been in development behind the scenes for the past 10 months, shrouded in secrecy until achieving significant milestones. This fiat-backed stablecoin, crafted by Hong Kong-based Dram Trust, won’t be available to users in the UAE and Hong Kong initially. However, talks are underway to extend access and liquidity to other regions, potentially transforming centralized crypto operations.
The ERC-20 Fungibility Factor
Built on the ERC-20 token standard, DRAM inherits the fungibility characteristic, enabling a one-for-one exchange with the Dirham. The choice of the UAE’s fiat currency was a strategic one for Naheta, who pointed to the nation’s robust economy and the escalating interest in stable, digital asset investments in the Middle East.
UAE’s Crypto Landscape
The UAE’s commitment to embracing blockchain and fostering a crypto-friendly environment is evident through initiatives like the Virtual Asset Regulatory Authority (VARA). This regulatory body provides a secure haven for crypto businesses, attracting major players such as Binance. As the nation solidifies its position as a blockchain and financial hub, the introduction of DRAM adds another layer to its dynamic crypto landscape.
DTR’s Journey: Learning from Experience
DTR’s foray into the crypto world dates back to 2019 when it launched a test pilot for a decentralized payment platform called Unit-e. Although the platform garnered attention from academia, including Stanford University, MIT, and the University of Illinois, widespread adoption proved elusive. Reflecting on this, DTR pivoted, focusing on creating a service that meets demand and delivers tangible value.
UAE’s CBDC Bridge with India
In parallel, the UAE government is actively collaborating with the Reserve Bank of India (RBI) to establish a central bank digital currency (CBDC) bridge. This collaboration aims to facilitate seamless value exchange and remittances between the two nations, solidifying economic ties.
Crypto Adoption in the UAE
The blockchain security services firm Chainalysis reports a substantial spike in crypto adoption within the UAE over the past year. With a high decentralized exchange (DEX) figure, the nation is only surpassed by Israel in crypto activity, showcasing the region’s growing prominence in the global crypto landscape.
In conclusion, the introduction of DRAM represents a significant milestone for DTR, aligning with the UAE’s trajectory as a crypto hub. As blockchain technology continues to evolve, the DRAM stablecoin stands as a testament to innovation that transcends borders, offering users a reliable and efficient means of transferring value in the ever-expanding digital economy.
