A new stablecoin aims to provide exposure to the United Arab Emirates’ currency
An alumnus of MIT and former SoftBank executive has launched a Dirham-backed stablecoin that seeks to offer countries with high inflation exposure to assets linked to the United Arab Emirates’ native currency. The company, based in Abu Dhabi, has been developing this technology since October 2022. The stablecoin, called DRAM, is an Ethereum ERC-20 token issued by DRAM Trust. It operates under the jurisdiction of Hong Kong law and has an independent trustee responsible for approving token mints and burns. Currently, DRAM cannot be offered in Hong Kong or the UAE, but discussions are ongoing to list it on centralized exchanges outside of those jurisdictions.
Regulatory parameters and smart contract addresses
Before minting any DRAM tokens, regulatory requirements mandate that Dirham fiat reserves must be deposited. These reserves are held by regulated financial institutions. The DRAM website provides links to the stablecoin’s smart contract addresses for Ethereum, BNB, and Arbitrum. At the time of publication, the max total supply of DRAM is 2 million tokens for ETH, 499,999 tokens for ARB, and 2.5 million tokens for BNB.
The history of DTR and the development of Unit-e
DTR had previously developed a decentralized payments system called Unit-e in partnership with academic institutions such as Stanford, MIT, and the University of Illinois. The goal was to disrupt payments and create a protocol with high throughput and cost efficiency. While DTR cannot market DRAM in the UAE, they anticipate demand from companies in the region dealing with high inflation and currency issues.
The UAE as a hub for cryptocurrency and Web3
The United Arab Emirates is becoming a prominent hub for the cryptocurrency and Web3 space due to favorable regulatory frameworks that promote financial innovation and digital asset adoption. Major exchanges like Coinbase have expressed interest in operating within the jurisdiction, and Binance is already operational in Dubai.
Hot Take: DRAM stablecoin opens up investment opportunities in the UAE
The launch of the Dirham-backed stablecoin DRAM provides countries with high inflation environments an investment option linked to the United Arab Emirates’ currency. With its development under Hong Kong law, DRAM aims to offer stability and exposure to assets for companies grappling with inflation and currency issues in the region. The UAE’s supportive regulatory environment has positioned it as a hub for cryptocurrency and Web3, attracting major players in the industry. As demand for digital assets grows, stablecoins like DRAM can provide a secure and efficient means of investment.
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