Former SoftBank Executive Launches UAE Dirham-Backed Stablecoin

A former SoftBank executive, Akshay Naheta, is charting a new course in the stablecoin market through the establishment of a new stablecoin, DTR, backed by the United Arab Emirates Dirham. While most stablecoin market entrants have focused on USD-pegged stablecoins, Naheta’s approach is a departure from this norm.

The Launch of DTR Stablecoin

Naheta, an experienced financier, has set up DTR in the international financial free zone of the emirate. In this endeavor, he has partnered with DRAM Trust, a Hong Kong-based entity linked to several high-net-worth individuals.

Stablecoin Market Potential

With the stablecoin market projected by Bernstein analysts to grow twentyfold, reaching $2.8 trillion in the next five years, Naheta and DRAM Trust aim to utilize this potential. The DRAM coins are intended to offer enhanced stability for individuals in high-inflation nations such as Turkey, Egypt, and Pakistan.

Moreover, the UAE stablecoin could serve as an alternative to the SWIFT system. “Our main focus is the unbanked and underbanked in these nations. If you want to diversify your risk and be in a currency that’s complimentary to the dollar, there’s a big percentage of money that can move into this,” said Naheta.

Availability on Decentralized Exchanges

DRAM coins will be available on decentralized exchanges like Uniswap, Sushiswap, and Pancakeswap. Plans to collaborate with centralized exchanges are also in the pipeline.

Interest in the UAE and Beyond

The cryptocurrency is expected to attract significant interest in the UAE, mainly because of the country’s large expatriate community and its location near several African, Middle Eastern, and Asian nations with high inflation rates.

While Emirati banknotes currently have a modest impact on the global economy, they have recently become a more common petrocurrency. “We’re moving into a whole new and rewired financial system where the dirham will be a big player,” Naheta said. “I’m extremely bullish on the UAE. It’s the new Switzerland – geopolitically neutral, a great transportation hub and a top tourism destination.”