Swiss-based DTR Launches Dirham-Backed Stablecoin
Distributed Technologies Resources (DTR), a blockchain firm based in Switzerland, has introduced a stablecoin called DRAM. The token, which represents the United Arab Emirates’ national currency, was launched on October 3, 2023. According to Akshay Naheta, the founder of DTR and a former SoftBank executive, DRAM will enable users from different regions to seamlessly transfer value across borders. The stablecoin is listed on decentralized exchange protocols Uniswap and PancakeSwap using the Binance Coin (BNB) pair. The development of the fiat-backed stablecoin was led by Hong Kong-based Dram Trust. However, UAE and Hong Kong users will not have access to DRAM.
DTR’s Previous Endeavors and UAE’s Growing Blockchain Hub
DTR began its operations around 2019 and previously built a decentralized payment platform called Unit-e. Despite attracting academics and researchers from prestigious institutions like Stanford University, MIT, and the University of Illinois, the platform did not gain widespread appeal. This experience prompted DTR to focus on a service that is in high demand. Naheta explained that choosing the UAE’s fiat currency as the basis for DRAM was an easy decision due to the nation’s strong economy and growing interest in stable digital assets in the region.
The UAE has positioned itself as a thriving blockchain and financial hub, offering favorable conditions for crypto businesses through its Virtual Asset Regulatory Authority (VARA). Companies like Binance have already established a presence there, while others are considering moving their operations to the country.
The Rise of Crypto Adoption in the Middle East
A recent report by Chainalysis reveals that cryptocurrency adoption in the Middle East has experienced significant growth over the past year. Among Middle Eastern countries, the UAE has a high decentralized exchange (DEX) figure, second only to Israel.
Hot Take: DRAM’s Potential Impact on Cross-Border Transactions
The launch of DRAM, a Dirham-backed stablecoin by DTR, has the potential to revolutionize cross-border transactions. By tokenizing the UAE national currency, DRAM allows users from different regions to transfer value seamlessly and efficiently. The listing of DRAM on popular decentralized exchange protocols further enhances its accessibility and liquidity. While UAE and Hong Kong users are currently unable to access DRAM, discussions are underway to extend its availability to other regions. As the UAE continues to establish itself as a blockchain and financial hub, the introduction of DRAM adds another layer of innovation to the crypto ecosystem in the region.
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