A new stablecoin has entered the market, offering stability and convenience to users in the Middle East. The stablecoin, pegged to the dirham (AED) – the currency of the United Arab Emirates (UAE), was launched by ex-SoftBank executive Akshay Naheta in partnership with DRAM Trust, a Hong Kong-based financial firm.
Stablecoins are a type of cryptocurrency that aim to maintain a stable value relative to a reference asset. They can be tied to fiat money, exchange-traded commodities, or other cryptocurrencies. In the case of Naheta’s stablecoin, it is designed to bring enhanced currency stability to users in the Middle East who are facing high inflation rates. By providing a means to hedge against inflation risks, the stablecoin offers a valuable tool for individuals in the region.
Akshay Naheta is a British-Indian businessman who has previously worked for SoftBank Group and is currently a Partner at SoftBank Investment Advisers. He is known for his entrepreneurship, leadership, and expertise in finance and technology. Before his time at SoftBank, Naheta founded Knight Assets & Co., specializing in arbitrage and value investing. He holds a degree in Electrical and Computer Engineering from the University of Illinois at Urbana-Champaign.
Aside from addressing inflation concerns, the stablecoin project led by Naheta and DRAM Trust 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 has the potential to disrupt the traditional international banking system and offer more efficient and cost-effective options for users.
The stablecoin market has grown significantly in recent years and has become a vital part of the Web3 ecosystem. Despite the bear market situation, users remain interested in stablecoins such as USDT and USDC, which are currently the two most prominent examples. The Middle East and North Africa (MENA) region emerged as the fastest-growing crypto market in 2021-2022, according to Emurgo. Despite crypto trading bans and legal penalties in some countries like Egypt, blockchain regulations are evolving in the region.
For Naheta, the primary focus of this initiative is to empower 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 a stablecoin option backed by the UAE dirham, the project hopes to enable these populations to manage their finances more effectively and improve their financial well-being.
In conclusion, the introduction of a new stablecoin pegged to the dirham offers Middle Eastern users stability and protection against inflation risks. Led by ex-SoftBank executive Akshay Naheta, in partnership with DRAM Trust, this initiative not only addresses inflation concerns but also aims to provide an alternative to the traditional SWIFT system. As the stablecoin market continues to thrive, the Middle East and North Africa region has emerged as a key player in the crypto market. Through this project, Naheta hopes to empower the unbanked and underbanked populations by offering them a stablecoin option backed by the UAE dirham.