A former MIT alumnus and SoftBank executive, Akshay Naheta, has introduced a Dirham-backed stablecoin called DRAM. The purpose of this new cryptocurrency is to provide countries suffering from high inflation the opportunity to invest in assets linked to the United Arab Emirates’ native currency. DRAM was recently listed on the decentralized finance protocols Uniswap and PancakeSwap on October 3rd.
Cointelegraph reached out to Naheta, who is the founder and CEO of Distributed Technologies Research (DTR), to discuss the launch of the stablecoin. DTR, which Naheta helped co-found in Switzerland in 2019, has been working on developing the technology for a Dirham-backed stablecoin since October 2022.
DRAM is an Ethereum ERC-20 token that is issued by DRAM Trust, an organization governed by Hong Kong laws. The approval of token mints and burns is overseen by an independent trustee licensed and regulated under the Hong Kong Monetary Authority. However, as of now, DTR cannot offer DRAM in Hong Kong or the United Arab Emirates. Naheta has mentioned ongoing conversations to provide token liquidity for listing on centralized exchanges outside of these two jurisdictions.
In order to mint any DRAM tokens, regulatory parameters mandate that Dirham fiat reserves must be deposited and held by regulated financial institutions. The DRAM website provides smart contract addresses for Ethereum, BNB, and Arbitrum, allowing users to track the supply and transactions of the token. At the time of publication, the max total supply of DRAM was 2 million on Ethereum, 499,999 on Arbitrum, and 2.5 million on Binance Smart Chain.
Cointelegraph conducted a background search on Distributed Technologies Research and discovered its previous launch in Switzerland four years ago. The foundation went on to develop a decentralized payments system called Unit-e in collaboration with academic institutions such as Stanford, MIT, and the University of Illinois. Naheta, who was involved in founding DTR during his tenure at SoftBank, shared details of the company’s efforts in a document reviewed by University of Illinois researchers. While the Unit-e project aimed to disrupt payments and create a high-throughput protocol with cost efficiency, the team behind DRAM consists of around 30 permanent staff and contractors.
Although DTR cannot market DRAM in the UAE, Naheta expects demand for the stablecoin from companies in the region struggling with high inflation and currency instability. The UAE has emerged as a hub for the cryptocurrency and Web3 industry due to favorable regulatory frameworks that encourage innovation and the adoption of digital assets. Major exchanges like Coinbase and Binance are actively exploring operations within the jurisdiction.
The launch of DRAM reflects Naheta’s vision to address the economic challenges faced by countries with high inflation rates. By providing exposure to assets linked to the Dirham, the stablecoin aims to offer stable and digital investment options in such regions, leveraging the strong performance and attractiveness of the UAE economy. The future growth and adoption of DRAM will depend on the ongoing conversations regarding token liquidity and listings on centralized exchanges outside of Hong Kong and the UAE.
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