Distributed Technologies Research Limited (DTR), an Abu Dhabi Global Market (ADGM) – based decentralised finance (DeFi) startup, has launched an UAE dirham-backed stablecoin called DRAM.
The aim of issuing a dirham-backed stablecoin was to establish a foothold in the $130 billion market, currently dominated by US dollar-backed stablecoins, adding that it is attempting to leverage the more liberal approach of the UAE to cryptocurrencies and the Web3 ecosystem compared to other jurisdiction.
Akshay Naheta
DTR will licence its stablecoin technology to Hong Kong-based DRAM Trust, which will hold the reserves backing the tokens. Every DRAM token will be backed by AED3.6725, equal to $1.
Starting Monday, the token will be available on most global decentralised exchanges, Naheta revealed, with centralised exchanges likely to follow soon.
He reportedly disclosed DRAM coins worth up to $10 million will be issued initially and the startup’s plans to launch its own decentralised finance wallet in the first quarter of 2024.
Industry Reaction
“Stablecoins have been one of the most pivotal use cases for digital assets. Traditionally, the stablecoin landscape has been dominated by US dollar-backed stablecoins such as USDT, USDC, and the recently introduced PYUSD. To gauge their popularity, one only needs to look at the numbers i.e., the total market cap of stablecoins hovers around $124.117 billion (according to DeFi Llama), with USDT leading the way with a commanding 67.13% market share.”
Manhar Garegret
Globally, corporations shuffle approximately $23.5 trillion (as per JP Morgan’s report) across borders each year. The associated transaction costs for these massive sums tally up to a staggering $120 billion annually. This process is also plagued by issues like trapped liquidity, delayed settlements, and the need for foreign currency conversions. In this context, stablecoins offer a streamlined solution, enabling seamless transactions with unparalleled security and traceability on a distributed ledger technology. These transactions can easily be facilitated through regulated and compliant custody solutions providers.
He asserted, “The UAE market has already surprised us with their commitment to become leaders in the digital assets space and it is not surprising to see such highly innovative and simple-to-use Web3 products emerging from the nation. The launch of Dirham-backed stablecoin shows that the digital asset market in the region is entering a more mature phase and is ready for the next phase of growth on the back of evolved regulatory frameworks.”
