Distributed Technologies Research (DTR), a technology firm co-founded by an MIT alumnus and a former SoftBank executive, has unveiled DRAM, a stablecoin backed by the United Arab Emirates dirham. DRAM aims to offer nations with high inflation an opportunity to leverage assets associated with the UAE’s stable fiat currency. The stablecoin, an Ethereum ERC-20 token, has been listed on decentralized finance platforms Uniswap and PancakeSwap.
DTR, rebooted in Abu Dhabi and initially co-founded in Switzerland in 2019, has developed DRAM to facilitate transactions that are immune to the high inflation affecting various countries. DRAM is issued by the Hong Kong-based Dram Trust and is regulated by an independent trustee under the Hong Kong Monetary Authority, ensuring a secure and regulated framework for the stablecoin’s operation.
Currently, DRAM is not available in Hong Kong or the UAE due to regulatory constraints, but efforts are underway to facilitate its listing on centralized exchanges outside these regions. The stablecoin’s issuance is preceded by the deposit of dirham fiat reserves held by regulated financial entities, ensuring the stablecoin’s value is securely backed.
The DRAM stablecoin is available on Ethereum, BNB Smart Chain, and Arbitrum, offering users diverse options for transactions. Despite regulatory restrictions in specific jurisdictions, the stablecoin is expected to gain traction among companies in regions facing currency instability, offering a digital asset anchored to the UAE’s robust economy.
The introduction of DRAM underscores the UAE’s growing prominence as a cryptocurrency and Web3 innovation hub, driven by regulatory frameworks conducive to digital asset adoption and financial innovation. The presence of major exchanges like Binance and the anticipated entry of others, such as Coinbase, highlights the region’s strategic importance in the global digital asset landscape.