The UAE announces the first cryptocurrency backed by the dirham

Muhamed abdo - | UAE

In a response to the United States' $125 billion cryptocurrency sector, the United Arab Emirates has just announced the world's first stablecoin backed by the Dirham

The UAE's evolved policy framework will launch a Dirham-backed stablecoin, the first global attempt to break into the $125 billion market dominated by US dollar-backed stablecoins.

DRAM, the first Dirham-backed stablecoin, was launched early this week by Distributed Technologies Research Ltd. (DTR), a 10-month-old decentralised finance (DeFi) startup founded by former SoftBank top executive Akshay Naheta. DTR plans to use the UAE's more liberal approach to cryptocurrencies and the Web3 ecosystem to gain a single-digit market share.

Stablecoins, cryptocurrencies connected to a fiat currency, financial instrument, or exchange-traded commodity, enable low-cost cross-border transfers.

Popular stablecoins like Tether (USDT), USD Coin (USDC), and PayPal USD (PYUSD) have a market valuation of over $125 billion.

Manhar Garegret, Country Head – India and Global Partnerships at Liminal, a wallet infrastructure and custody solutions platform, told Arabian Business that the launch of Dirham-backed stablecoin shows that the digital asset market in the region is maturing and ready for the next phase of growth due to evolved regulatory frameworks.

“The UAE market has already surprised us with their commitment to become leaders in digital assets, so it is not surprising to see such highly innovative and simple-to-use Web3 products emerging from the nation,” Garegret remarked.

DRAM launch a turning point for UAE digital assets

Crypto consultancy Metamorph CEO Satyandre Yadav called Dirham-backed stablecoin's debut a turning point for the UAE digital asset ecosystem.

He said the stablecoin market is one of the most established parts of the crypto business and the most popular use case since it allows users to transfer monetary value cheaply.
Yadav said the move will localize the UAE's digital asset market and reduce its dependence on USDT and USDC.

Due to the region's favorable legal environment, industry analysts expect DRAM, the new local currency-linked stablecoin, to succeed.

They also predicted that popular use cases will increase as crypto rules spread across more locations.

Dirham-linked stablecoin for low-cost UAE cross-border payments.

Stablecoins' main benefit, according to Garegret, is low-cost cross-border transfers.

JP Morgan estimates that firms move $23.5 trillion across borders annually. These large quantities incur $120 billion in transaction fees yearly, he noted.

Trapped liquidity, delayed settlements, and foreign currency conversions complicate this procedure.

Stablecoins provide frictionless transactions with unsurpassed security and traceability on a distributed ledger system.

Garegret said that regulated and compliant custody solutions providers may readily handle these transactions.

DTR wants a head start to corner single-digit market share soon.

DTR wants to gain a single-digit stablecoin market share for DRAM.

DTR founder Akshay Naheta said the business offers an enticing option for dollar-based stablecoin holders to be in a dollar-linked currency. It has a brighter macroeconomic outlook than the dollar.

All DRAM tokens will be backed by 3.6725 Dirhams ($1).

DTR will license its stablecoin technology to Hong Kong-based DRAM Trust, which will retain token reserves.

Most worldwide decentralized exchanges offer the cryptocurrency, with centralised exchanges expected to follow.

DTR may first produce $10 million DRAM coins.

Industry studies suggest stablecoins transacted $11 trillion, compared to Visa's $11.6 trillion.

About Author

Muhamed abdo
Muhamed abdo
489 Total posts

Read Also

Traffic Violations: Police warn drivers in the UAE to avoid a fine of dh1,000 dirhams and 4 black points

Traffic Violations: The United Arab Emirates Police Department is warning drivers to avoid a fine of one thousand dirhams and four black points.

The UAE issues a new decision regarding residency laws

Six cases of expulsion and expulsion of foreigners from the UAE have been identified by the executive regulations of the law on entry and residence of foreigners in the UAE.

Meteorology warns residents of a thunderstorm and heavy rains in the UAE

According to meteorology, there is a thunderstorm and heavy rainfall expected in the United Arab Emirates.

UAE government donates $25 million to support humanitarian efforts in Sudan.

The United Arab Emirates (UAE) has cemented an agreement with the United Nations World Food Programme (WFP) to deliver emergency food aid to those affected by the crises in Sudan and South Sudan.

UAE summer begins with scorching temperatures soaring to 49.9 degrees

The summer season in the UAE has officially commenced, with temperatures soaring to a record high of 49.9 degrees Celsius.

Urgent.. Abu Dhabi Police issues an important warning to all citizens and residents of the emirate

In order to prevent a fire from breaking out while they were traveling, the Abu Dhabi Police General Command issued a call to citizens and residents, urging them to take the required preventative measures to safeguard their homes and goods and that...

Urgent UAE: Important warning to all travelers abroad

The Ministry of Foreign Affairs has implemented a system of alerts and warnings for citizens who are planning to travel abroad. This system is accessible through an interactive map on the Emirati Traveler page of the ministry's website and smart...

UAE launches new initiative to test effectiveness of treatments for thalassemia

Health facilities in Abu Dhabi, overseen by the Abu Dhabi Department of Health, are leading efforts in clinical trials to evaluate new treatments for thalassemia.

Dubai clarifies process for residents to claim deposited funds from local hotels

When making a reservation at a hotel in the United Arab Emirates, guests should be prepared to pay a security deposit and agree to the hotel's terms and conditions. The primary responsibilities of each party are outlined in the contract terms...

Dubai: Careem Launches Electric Delivery Motorbikes for Sustainable Revolution

In a significant move towards enhancing sustainability and urban efficiency, a pioneering initiative recently debuted with the launch of Dubai's inaugural fleet of electric delivery motorbikes, accompanied by an extensive infrastructure for...

UAE: A Step-by-Step Guide to Renewing Your Russian Passport

Ensuring the timely renewal and safekeeping of passports is critical for all expatriates living in the UAE, as it facilitates everyday life and international travel.

The UAE urges parents to install baby gates for child home safety

When children come into their lives, new parents face numerous adjustments, from maintaining a dedicated baby bag to adapting to disrupted sleep schedules.

UAE Social Media Influencers Request Clarity on New Licensing Regulations

The new requirement for both influencers and marketers to get licenses for advertising services, imposed by the Abu Dhabi Department of Economic Development (ADDED), has content creators in the UAE hoping for a more organized relationship.

UAE Bans 31 Professions for Students During Vacations

The United Arab Emirates' Ministry of Human Resources and Emiratisation has outlawed the practice of private companies hiring and training students in 31 distinct occupations during vacations from school.

UAE driving license: Who is responsible for paying traffic fines for trainees in the UAE

In the United Arab Emirates, who is responsible for paying traffic fines for breaches committed while learning?

UAE doctors caution against heat exhaustion risks as Temperatures Approach 50°C

The UAE's hot temperatures, which reached as high as 49.9ºC in certain regions on Friday, have raised concerns about the potential health hazards associated with heat-related illnesses.

UAE restaurant offers complimentary buttermilk amid peak summer heat

One Sharjah restaurant is providing a welcome respite from the sweltering desert heat as the summer solstice approaches.

Dubai airports recorded over half a million travelers during 4-day Eid Al Adha

The General Directorate of Residency and Foreigners Affairs (GDRFA) in Dubai has affirmed its preparedness for the influx of travelers returning from the Haj pilgrimage. They have implemented special measures, including a designated stamp to welcome...

The UAE warned companies and social media influencers of a fine of up to 10,000 dirhams

A maximum fine of 10,000 dirhams was issued by the United Arab Emirates to businesses and social media influencers.

UAE banks grant $22.2bn loans to small and medium enterprises (SMEs)

By the quarter's end in 2024, the total amount of loans made by UAE-based banks to SMEs had accumulated to AED81.7 billion.

UAE mandates firms to hire Emiratis within 10 days or face fines

The UAE Ministry of Human Resources and Emiratisation has given private sector enterprises just 10 days to complete their Emiratization targets or face fines.

Dubai RTA facilitated travel for 6.7 million passengers During Eid Al Adha 2024

During the Eid Al Adha holiday period from June 15 to 18, 2024, Dubai’s Roads and Transport Authority (RTA) facilitated transportation for over 6.7 million passengers across the city.

Dubai Mall Paid Parking: Fees, Free Areas, Exemptions, All important Details

Starting July 1, significant changes are set to take effect in the parking arrangements at Dubai Mall, impacting both the cost and convenience for visitors.

Dubai Reveals DSS Schedule Featuring Deals, Prizes, Concerts, and More

The 65th annual Dubai Summer Surprises (DSS) will take place from June 28th through September 1st, 2024, and will feature the same fantastic events, shopping, prizes, restaurants, and accommodation deals as in previous years.

Dubai: E-Scooter and Bicycle Accidents Claim 4 Lives, Injure 25 This Year

The Dubai Police Department released disturbing data on e-scooter and bicycle accidents in the first half of 2024, highlighting serious safety issues and the need for enforcement measures.

The accommodation deals in the UAE start at 159 dirhams

The starting price for accommodations in the United Arab Emirates is 159 dirhams.

The cases in which the UAE Labor Law allows denial of annual leave

Is it permissible for employers in the UAE to refuse yearly leave because of other employees' absences?

UAE clarifies Divorce rights for non-Muslim women seek separation from husbands

Non-Muslim individuals residing in the UAE have the option to apply the personal laws of their home country in matters of personal status, such as marriage, divorce, inheritance, wills, and proof of parentage.

UAE announces new visa fines for residents 2023