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RAKBANK has obtained in-principle approval from the Central Financial institution of the UAE (CBUAE) to difficulty an AED-backed stablecoin, topic to the completion of regulatory and operational necessities.
The approval represents a major step within the financial institution’s digital belongings journey and aligns with the UAE’s broader push to develop a regulated and clear digital economic system. RAKBANK mentioned the proposed stablecoin is designed to mix the safety and belief of conventional banking with the effectivity and programmability of blockchain expertise.
RAKBANK advances digital belongings
When launched, the stablecoin shall be absolutely backed on a one-to-one foundation by the UAE dirham, with reserves held in segregated and controlled accounts to assist full redemption at par worth. The token can be anticipated to characteristic audited sensible contracts and real-time reserve attestations, supporting transparency, operational integrity and buyer confidence.
RAKBANK mentioned the event builds on its increasing digital asset capabilities. In 2025, the financial institution enabled its retail clients to commerce cryptocurrencies by means of a regulated brokerage accomplice, offering a compliant and safe route for patrons to entry digital belongings throughout the UAE’s regulatory framework.
Raheel Ahmed, Group Chief Government of RAKBANK, mentioned the approval displays the financial institution’s method to accountable innovation. “Receiving in-principle approval from the Central Financial institution of the UAE is a crucial milestone in our digital belongings journey. It displays our concentrate on innovation that’s accountable, regulated and constructed on belief,” he mentioned.
He added that the transfer comes because the financial institution marks its 50th anniversary. “As we mark our 50th anniversary, we stay dedicated to creating options which might be designed round our clients’ wants and aligned with the UAE’s imaginative and prescient for a future-ready monetary system. It’s one other step in delivering banking that’s digital with a human contact.”
Additional updates on the pilot section and potential enlargement of the stablecoin shall be introduced in the end, topic to remaining regulatory approvals.
Based in 1976, RAKBANK is among the UAE’s longest-established banks and is majority-owned by the Authorities of Ras Al Khaimah. Its shares are publicly traded on the Abu Dhabi Securities Trade (ADX). The financial institution operates a community of 21 branches throughout the UAE and affords private, enterprise, wholesale and Islamic banking providers by means of its RAKislamic unit.
The transfer locations RAKBANK amongst a rising group of regional lenders exploring regulated stablecoins as a method to assist digital funds, settlement effectivity and innovation throughout the monetary system.
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