RAKBank is moving closer to entering the United Arab Emirates’ growing stablecoin market after receiving in-principle approval on Wednesday from the Central Bank of the UAE (CBUAE) to issue a dirham-backed payment token.
The approval means the CBUAE supports the plan in principle, but RAKBank must meet final regulatory and operational requirements before launching the stablecoin.
In a press release, RAKBank said the stablecoin will be fully backed on a one-to-one basis by UAE dirhams held in segregated, regulated accounts.
It will be managed using audited smart contracts and supported by real-time reserve verification.
The move builds on RAKBank’s broader digital asset strategy, following its 2025 decision to allow retail customers to trade cryptocurrencies through a regulated brokerage partner.
RAKBank Group CEO Raheel Ahmed called the approval an important milestone, highlighting the bank’s focus on responsible, regulated innovation.
