Stablecoin issuers in the market mostly focus on stablecoins pegged to the US dollar. However, former SoftBank executive Akshay Naheta has taken a different approach by introducing a new stablecoin called DRAM, which is pegged to the United Arab Emirates dirham.
42-year-old finance expert Akshay Naheta established DTR, the issuer company of DRAM, in the international financial free zone of the Emirates. Naheta partnered with DRAM Trust, a Hong Kong-based organization with connections to numerous high net worth individuals, for this venture. It seems that Naheta aims to capitalize on the opportunities offered by the stablecoin market, which analysts at Bernstein predict will expand to over 2.8 trillion dollars, more than 20 times its current size, in the next five years.
DRAMs aim to provide more stability for individuals in countries with high inflation rates such as Turkey, Egypt, and Pakistan. Additionally, it will serve as an alternative to the SWIFT system, which is based in the UAE. In a recent interview, Naheta said the following about DRAM:
Our main focus is individuals who do not use banks in these countries. There is a large percentage of money that can flow into this market from individuals who want to diversify their risk and be in a currency that complements the US dollar.
DRAM will also be tradable on decentralized exchanges such as Uniswap, Sushiswap, and Pancakeswap. Naheta stated that his team intends to collaborate with centralized exchanges in the near future.
Due to its proximity to various countries in Africa, the Middle East, and Asia, DRAM is expected to gain significant interest in the UAE. The country’s significant expatriate community and high inflation rates contribute to this appeal. Although the UAE dirham currently holds a modest position in the global economy, it has recently gained recognition as a more widely accepted petrocurrency.
Naheta claims that the United Arab Emirates is the new Switzerland, stating, “We are transitioning to a brand new and restructured financial system where the UAE dirham will be a major player. I am extremely optimistic about the United Arab Emirates. It is a geopolitically neutral country, an excellent transportation hub, and a new Switzerland, which is the best tourism destination.”