Benzinga - A new stablecoin pegged against the Dirham was launched which will protect consumers from high inflation rates in the U.A.E.
What Happened: Former Softbank Group Corp executive Akshay Naheta founded a company, DTR, in the United Arab Emirates (UAE) International Financial Free Zone to launch a new stablecoin, DRAM, supported by the local currency, the Dirham.
The company created in collaboration with Hong Kong-based DRAM Trust wants to cushion individuals’ currency stability in high-inflation countries such as Turkey, Egypt and Pakistan.
“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 complementary to the dollar, there’s a big percentage of money that can move into this,” Naheta commented in an interview from Dubai as cited by Bloomberg.
Also Read: Paxos Reveals PayPal Stable Coin PYUSD Is Backed By Treasury And Cash Reserves
Why It Matters: Naheta believed Dirham would be a big player in a whole new and rewired financial system. Naheta was highly bullish on the UAE and perceived it as the “new Switzerland — geopolitically neutral, a great transportation hub and a top tourism destination.”
Not only would the stablecoin act as a hedge against inflation risks but would also serve as an alternative to the SWIFT system. Additionally, it would be usable on decentralized exchanges (DEX) such as Uniswap, SushiSwap and PancakeSwap. Naheta would like to partner with centralized exchanges (CEX) in the future.
The coin is likely to attract interest from the expat community residing in the UAE and also nearby nations such as Africa, the Middle East, and Asia, which are also impacted by high inflation rates.
Naheta History: Softbank acquired an 8% stake in U.K. e-commerce company, THG, in May 2021, a deal led by Naheta. He ran SB Management, which managed the SB Northstar fund as part of the SoftBank group. The fund closed most of its positions after reporting up to $6 billion in losses.
U.A.E-based Naheta was the youngest executive to report directly to SoftBank Group founder Masayoshi Son. He was also the person who pitched Son on the sale of chip designer Arm to semiconductor designer Nvidia.
Read Now: Circle Argues Stablecoins Are Not Securities, Files Friend of Court Brief In Binance-SEC Case
Find out more about such stablecoins and their performances. Join Benzinga's Fintech Deal Day & Awards on Nov. 13 and Future of Digital Assets on Nov. 14 in New York City to stay updated on trends like AI, regulations, SEC actions and institutional adoption in the crypto space. Secure early bird discounted tickets now! What’s more, USE BZCRYPTO code to get 20% OFF.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.