Distributed Technologies Research (DTR), a decentralised finance startup founded by former SoftBank executive Akshay Naheta just ten months ago, has unveiled its stablecoin, DRAM, backed by the UAE dirham.
According to media reports, DTR plans to license its stablecoin technology to DRAM Trust, a Hong Kong-based entity that will maintain the reserves supporting these tokens. Each DRAM token will have a backing of 3.6725 dirhams, equivalent to USD 1. Starting from Monday, the token will be available on most global decentralised exchanges, with centralised exchanges likely to follow soon. The initial issuance of DRAM coins will amount to USD 10 million.
DTR also intends to launch its decentralised finance wallet in the first quarter of 2024, enabling users to hold stablecoins and facilitate global payments. As DTR, currently employing around 30 people, continues to develop more products and services, it plans to expand its workforce.
While stablecoins are typically backed by official currencies, some countries, like India, have adopted a cautious stance on cryptocurrencies. The Reserve Bank of India (RBI) has highlighted the risks stablecoins pose to the monetary policy independence of central banks.
The primary attraction of fiat-backed tokens is that they generally trade at around USD 1 per token, providing stability in highly volatile market conditions. In 2022, stablecoins processed USD 11 trillion worth of transactions, compared to USD 11.6 trillion processed by Visa, according to the DRAM white paper.
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