Monday 2 October 2023

Ex-SoftBank Exec Naheta Sets Up #UAE Dirham-Backed Stablecoin DTR in #AbuDhabi - Bloomberg

Ex-SoftBank Exec Naheta Sets Up UAE Dirham-Backed Stablecoin DTR in Abu Dhabi - Bloomberg

Akshay Naheta, a former SoftBank Group Corp. executive who steered some of the firm’s biggest deals, is launching a new company in Abu Dhabi focusing on stablecoin technology.

The 42-year-old financier has set up DTR within the emirate’s international financial free zone and will partner on the project with Hong Kong-based DRAM Trust, which has ties to several high-net-worth individuals. They’re looking to capitalize on a stablecoin market that analysts at Bernstein estimate will grow more than 20-fold to $2.8 trillion in five years.

Unlike most coins in the market that are tied to the US dollar, DRAM coins will be backed by the United Arab Emirates dirham. The currency’s peg to the greenback offers greater stability for individuals in high-inflation countries from Turkey to Egypt and Pakistan, while also providing an alternative to the SWIFT system.

“Our main focus is the unbanked and underbanked in these nations,” Naheta said in an interview from Dubai. “If you want to diversify your risk and be in a currency that’s complimentary to the dollar, there’s a big percentage of money that can move into this.”

A former trader at Deutsche Bank AG, Naheta was central to some of SoftBank’s biggest deals during his tenure. He pitched founder Masayoshi Son on the sale of chip designer Arm to semiconductor designer Nvidia Corp. He also led a $4 billion investment in Nvidia in 2017, earning $3 billion in profit.

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