Former MIT Alumnus Launches Dirham-Backed Stablecoin DRAM to Address High Inflation
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Modified on: Wed, 4 Oct, 2023 at 5:58 AM
Distributed Technologies Research (DTR), founded by a former Massachusetts Institute of Technology (MIT) alumnus and SoftBank executive, has introduced DRAM, a dirham-backed stablecoin. DRAM aims to provide exposure to the United Arab Emirates’ fiat currency for countries grappling with high inflation. The Ethereum-based ERC-20 token, listed on decentralized finance protocols Uniswap and PancakeSwap, is issued by Hong Kong-based Dram Trust. DRAM’s smart contract addresses include Ethereum, BNB Smart Chain, and Arbitrum, with regulatory parameters requiring dirham fiat reserves before token minting. DTR cannot offer DRAM in Hong Kong or the UAE but is exploring token liquidity on centralized exchanges outside these jurisdictions.
Former MIT Alumnus Launches Dirham-Backed Stablecoin DRAM to Address High Inflation
Distributed Technologies Research (DTR), led by a former Massachusetts Institute of Technology (MIT) alumnus and ex-SoftBank executive, has introduced DRAM, a stablecoin backed by the dirham, the fiat currency of the United Arab Emirates (UAE). The initiative aims to provide countries facing high inflation with exposure to assets linked to the UAE's fiat currency.
DRAM, an Ethereum-based ERC-20 token, is issued by Hong Kong-based Dram Trust. It was listed on decentralized finance (DeFi) protocols Uniswap and PancakeSwap on October 3. The token's smart contract addresses are provided for Ethereum, BNB Smart Chain, and Arbitrum.
According to Akshay Naheta, co-founder and CEO of DTR, regulatory parameters dictate that dirham fiat reserves must be deposited before minting any DRAM tokens. The reserves are reportedly held by regulated financial institutions. While DTR is currently unable to offer DRAM in Hong Kong or the UAE, discussions are ongoing to explore token liquidity for listing on centralized exchanges outside these jurisdictions.
A background search revealed the previous launch of DTR in Switzerland in 2019, where it developed the Unit-e decentralized payments system. Naheta founded DTR during his tenure at SoftBank, and the company went on to work on Unit-e, collaborating with academic institutions such as Stanford University, MIT, and the University of Illinois.
DTR's initial ambition was to disrupt payments and create a protocol with high throughput and cost efficiency. The current DRAM project, involving around 30 permanent staff and contractors, is focused on addressing demand from companies in the UAE region dealing with high inflation and currency challenges.
The UAE has become a notable hub for cryptocurrency and Web3 activities due to favorable regulatory frameworks supporting financial innovation and the adoption of digital assets.
(GARETH JENKINSON, COINTELEGRAPH, 2023)
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