RAKBANK has received in-principle approval from the Central Bank of the UAE (CBUAE) to issue a dirham-backed stablecoin, the bank announced today.
The approval is subject to the completion of regulatory and operational requirements. The move represents a step in RAKBANK’s expansion into digital assets and demonstrates the bank’s focus on developing financial solutions within the UAE’s digital economy framework.
The announcement follows RAKBANK’s 2025 decision to enable retail customers to trade cryptocurrency through a regulated brokerage partner.
How the stablecoin will work
The stablecoin will be backed 1:1 by the UAE Dirham. The backing will be held in segregated, regulated reserves to support redemption at par value.
The token will use audited smart contracts with real-time reserve attestations to support transparency and operational integrity.
“Receiving in-principle approval from the Central Bank of the UAE is an important milestone in our digital assets journey. It reflects our focus on innovation that is responsible, regulated and built on trust. As we mark our 50th anniversary, we remain committed to developing solutions that are designed around our customers’ needs and aligned with the UAE’s vision for a future-ready financial system. It is another step in delivering banking that is digital with a human touch,” Raheel Ahmed, Group CEO of RAKBANK said in a statement.
RAKBANK will share updates on the pilot phase and potential expansion subject to regulatory approvals.
The stablecoin combines traditional banking with blockchain technology, according to the bank.
