Abu Dhabi-based startup Distributed Technologies Research Limited (DTR) has launched a UAE dirham-backed stablecoin called DRAM. The aim of issuing a dirham-backed stablecoin was to establish a foothold in the $130 billion stablecoin market, which is currently dominated by US dollar-backed stablecoins. Founder and CEO Akshay Naheta stated that DTR is looking to capture a single-digit market share of the stablecoin market for DRAM in the near term. The startup plans to leverage the more liberal approach of the UAE to cryptocurrencies and the Web3 ecosystem compared to other jurisdictions. DTR will license its stablecoin technology to Hong Kong-based DRAM Trust, which will hold the reserves backing the tokens. Each DRAM token will be backed by AED3.6725, equal to $1. In addition to the stablecoin launch, DTR plans to release its own decentralized finance wallet in the first quarter of 2024, enabling users to hold stablecoins and make payments worldwide.
Meanwhile, Umoja has partnered with Merlin Chain to introduce the dollar-pegged stablecoin USDb on the Bitcoin finance ecosystem. The stablecoin is based on tokenized trading strategies and offers stability and passive income. Umoja founder Robby Greenfield believes that the most decentralized, accessible, lowest risk, and highest-yielding money can only be built on Bitcoin. The partnership aims to enhance the accessibility of advanced asset management tools and contribute to a more inclusive financial landscape. Merlin Chain has over $3.6 billion in total value locked (TVL) and is set to launch the Runes protocol on April 20.
USDR, a stablecoin issued by Tangible, lost its peg to the US dollar and dropped in value by 50% within hours. The stablecoin, which features tokenized real estate as part of its reserve composition, traded at $0.996 before falling to $0.50. The company plans to make announcements about post-mortem and real estate liquidations to replenish reserves and compensate users. Unlike popular stablecoins backed by cash and short-term US debt, USDR's reserve composition includes DAI, a decentralized stablecoin largely backed by USDC. The company's website states that up to 50% of the provider's reserves are kept in DAI, and if the collateralization ratio drops below 100%, 50% of the rental yield will be redirected to the treasury to ensure full backing. [12549943]
Bain Capital Crypto has led a $35 million Series A funding round for M^0, a cryptocurrency protocol that aims to bring greater liquidity to the stablecoin market. M^0 has built decentralized infrastructure that allows institutions to mint cryptodollars backed by U.S. Treasuries. The protocol has raised a total of $57.5 million in funding, with previous seed funding led by Pantera Capital. The support from Bain Capital Crypto, a larger and more diversified investment company, indicates a growing consensus that stablecoins will play an increasing role in the global economy. Stablecoins currently have a market capitalization of over $160 billion and are projected to reach a trillion-dollar valuation by 2030. M^0 aims to unify the market by minting coins that are fully fungible and independent from the legacy financial system. However, institutions will need to comply with local regulations. The infrastructure is expected to be available for anyone, but the U.S. market won't be a target due to the lack of regulation permitting banks to issue their own stablecoins. Stefan Cohen, a partner at Bain Capital Crypto, expects the stablecoin market to grow quickly to trillions of dollars over the next decade. [36c8b994]
