In an effort to challenge the United States’ domination of the $125 billion cryptocurrency sector, the United Arab Emirates (UAE) has introduced a Dirham-backed stablecoin called DRAM.
This initiative represents a significant leap forward in the UAE’s digital asset market and showcases the country’s readiness to embrace the next phase of growth with evolved regulatory frameworks.
Distributed Technologies Research Ltd. (DTR), a 10-month-old decentralized finance (DeFi) startup founded by former SoftBank executive Akshay Naheta, unveiled DRAM earlier this week.
With the UAE’s progressive approach to cryptocurrencies and the burgeoning Web3 ecosystem, DTR aims to carve out a single-digit market share in the competitive stablecoin market.
Stablecoins, cryptocurrencies pegged to fiat currencies, have become a preferred tool for low-cost cross-border transactions.
Popular stablecoins like Tether (USDT) and USD Coin (USDC) have already amassed a market valuation exceeding $125 billion.
Manhar Garegret, Country Head – India and Global Partnerships at Liminal, praised the UAE’s commitment to digital assets and the emergence of innovative Web3 products like DRAM, affirming that the digital asset market in the region is maturing rapidly.
The launch of DRAM signifies a turning point in the UAE’s digital asset ecosystem, according to Satyandre Yadav, CEO of crypto consultancy Metamorph.
It will reduce the UAE’s reliance on USD-backed stablecoins like USDT and USDC while localizing its digital asset market.
One of the key advantages of stablecoins, highlighted by industry experts, is their potential to facilitate low-cost cross-border payments.
With the UAE’s favorable regulatory environment, DRAM is well-positioned to succeed and gain adoption.
As the global demand for stablecoins continues to grow, DRAM’s entrance into the market promises to offer users efficient and cost-effective cross-border transactions, potentially reshaping the landscape of international payments.