A new stablecoin is on the market, pegged to the dirham (AED) — the currency of the United Arab Emirates (UAE) and launched by an ex-SoftBank executive Akshay Naheta for users in the Middle East. The stablecoin project in is being developed in partnership with DRAM Trust, a Hong Kong-based financial firm.
Stablecoins are a type of cryptocurrency that is designed to maintain a stable value relative to a reference asset, which can be fiat money, exchange-traded commodities, or another cryptocurrency.
Naheta’s stablecoin is designed to bring enhanced currency stability to users in the Middle East who are facing high inflation rates, providing them with a means to hedge against inflation risks.
The Ex-executive is a British-Indian businessman who has worked for SoftBank Group and is involved in several high-profile investments for the Vision Fund. He is currently a Partner at SoftBank Investment Advisers.
Naheta, prior to SoftBank, was the Founder and Managing Partner of Knight Assets & Co., specializing in arbitrage and value investing.
He is known for entrepreneurship, leadership, and financial/tech expertise and holds a Degree in Electrical and Computer Engineering from the University of Illinois at Urbana-Champaign.
The stablecoin project led by Akshay Naheta and DRAM Trust intends to extend its influence beyond addressing inflation concerns. It aims to provide an alternative to the SWIFT system, which is traditionally used for international money transfers.
This move towards creating a digital alternative to SWIFT could potentially disrupt the traditional international banking system.
Over the years, the stablecoin market has become a huge part of the Web3 ecosystem. Despite the bear market situation, a lot of users are still interested in Stablecoins such as USDT and USDC which are the two most prominent examples today.
According to Emurgo, the Middle East and North Africa (MENA) emerged as the fastest-growing crypto market in 2021-2022. In Egypt, blockchain regulations are evolving despite crypto trading bans enforced with legal penalties.
Naheta emphasized that the primary focus of this initiative is on the unbanked and underbanked populations in countries facing economic challenges. These individuals often lack access to traditional banking services and are particularly vulnerable to inflation and currency instability.
By offering them a stablecoin option backed by the UAE dirham, the project hopes to empower these populations to manage their finances more effectively.
