Ex-MIT Alum and SoftBank Executive Launches Dirham-Backed Stablecoin DRAM
Summary:
Ex-MIT student and former SoftBank executive, Akshay Naheta, has launched a Dirham-linked stablecoin known as DRAM through his company, Distributed Technologies Research (DTR). It aims to offer high-inflation nations an opportunity to invest in an asset associated with UAE's currency. Although DRAM cannot currently be offered in UAE or Hong Kong, DTR intends to list it on centralized exchanges outside these regions. This venture follows Naheta's former project of pioneering a decentralized payment system called Unit-e.
An ex-student of Massachusetts Institute of Technology and a former executive at SoftBank, Akshay Naheta, has initiated a Dirham-pegged stablecoin venture. This new crypto asset aims to offer inflation-stricken nations the chance to invest in an asset linked to the native currency of United Arab Emirates (UAE). Naheta, currently the CEO of Distributed Technologies Research (DTR), introduced the DRAM stablecoin, which got enlisted on DeFi protocols like Uniswap and PancakeSwap on October 3rd. DTR, based in Abu Dhabi, has been working on the technology for a Dirham-pegged stablecoin since October 2022. Notably, Naheta was a co-founder of DTR in Switzerland in 2019.
DRAM, an Ethereum ERC-20 token, is issued by the DRAM Trust, which falls under the jurisdiction of Hong Kong law. An independent trustee is appointed for overseeing the approval of token minting and burning and is allegedly licensed and regulated by the Hong Kong Monetary Authority. Currently, DTR is unable to offer DRAM within UAE or Hong Kong, but intends to furnish token liquidity for listing it on centralized exchanges beyond these regions.
As per regulations, Dirham fiat reserves need to be amassed prior to the minting of any DRAM tokens. These reserves are purportedly held by regulated financial institutions. Links to stablecoin’s smart contracts for Ethereum, BNB, and Arbitrum are available on the DRAM webpage. The contract shows a maximum total supply of 2 million DRAM, 499,999 DRAM on Arbitrum and 2.5 million DRAM on Binance Smart Chain.
Cointelegraph found that Naheta was instrumental in setting up DTR in Switzerland in 2015, whilst at SoftBank. Subsequently, the foundation devised a decentralized payments system called Unit-e through collaborations and grants with prestigious academic entities such as Stanford, MIT, and the University of Illinois.
Naheta stated that DTR's original aspiration in 2019 was to revolutionize payment systems and develop a protocol to ensure high throughput at an economical cost. The company is now focusing on DRAM stablecoin with a team of roughly 30 steadfast staff and contractors. Although DRAM cannot be marketed within UAE, companies plagued with high inflation and currency troubles in the region are keen on it. Naheta asserted that the link to Dirham was motivated by the robust performance of UAE’s economy and the regions’ interest in steady digital asset investment options.
Coinbase and many leading exchanges have expressed intentions of future operations in UAE, a budding hub for cryptocurrencies, thanks to its financial innovation-friendly regulations. Further solidifying this, Binance, a giant in crypto trading, is already functional in Dubai.
Published At
10/3/2023 12:50:18 PM
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