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, founder and CEO Akshay Naheta told Economic Times.
Attempting to leverage the more liberal approach of the UAE to cryptocurrencies and the Web3 ecosystem compared to other jurisdictions, the former SoftBank top executive added.
The startup is looking to capture a single-digit market share of the stablecoin market for DRAM in the near term by leveraging the more liberal approach of the UAE to cryptocurrencies and the Web3 ecosystem compared to other jurisdictions.
“We have linked it to the dirham as opposed to any other currency because it’s (UAE) a very stable and growing economy; it’s attracting a lot of talent and has become among the biggest financial hubs of the world,” Naheta told the Indian financial daily.
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 disclosed that DRAM coins worth up to $10 million will be issued initially.
The startup also plans to launch its own decentralised finance wallet in the first quarter of 2024, allowing its users to hold stablecoins and make payments across the globe.
The Tether and the USD Coin are among the most popular stablecoins, having a combined market cap of over $105 billion, the Economic Times said.
(Editing by Seban Scaria email@example.com )