Key takeaways
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RAKBANK has received in-principle approval from the CBUAE to issue a fully AED-backed stablecoin for payments.
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The approval signals growing momentum for regulated private sector digital finance in the UAE.
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Delays in the launch of Digital Dirham CBDC have opened space for banks like RAKBANK to lead stablecoin innovation.
As the long-awaited UAE Digital Dirham quietly passes its original launch window, private institutions are moving faster.
RAKBANK, one of the oldest banks in the country, is moving forward and has received regulatory approval to launch an AED-backed stablecoin.
RAKBANK approval in principle of the CBUAE authorizes the bank to issue an AED-backed stablecoin under the Payment Token Services Regulation.
Raheel Ahmed, Group CEO of RAKBANK, said:
“Receiving in-principle approval from the UAE Central Bank is an important milestone in our journey towards digital assets. It reflects our focus on innovation that is responsible, regulated and trust-based. It is another step in delivering digital banking with a human touch.”
This “in principle” status is a preliminary go-ahead, subject to meeting remaining regulatory and operational requirements before full launch.
Key features of the proposed stablecoin include:
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1:1 backup: Fully backed by AED reserves held in regulated and segregated accounts to ensure stability and redeemability.
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Transparency and Compliance: Reservations will be subject to independent audits, with real-time certifications through smart contracts, in line with the CBUAE’s emphasis on risk management and consumer protection.
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Use cases: Designed for digital payments, asset tokenization and cross-border settlements, potentially integrating with RAKBANK’s existing crypto trading platform for retail access.
This makes RAKBANK the latest in a series of UAE institutions to venture into stablecoins, following approvals from entities such as Zand Bank (Zand AED in November 2025) and AED Stablecoin LLC (AE Coin in October 2024).
RAKBANK is one of the oldest banks in the UAE with assets exceeding AED 88.3 billion ($24 billion) as of mid-2025.
RAKBANK, which traditionally focuses on retail, SME and corporate banking, has increasingly embraced digital and fintech innovations to remain competitive in the UAE’s tech economy.
In July 2025, RAKBANK became the first mainstream bank in the UAE to integrate cryptocurrency trading directly into its mobile app, partnering with Bitpanda Technology Solutions under the supervision of Dubai’s Virtual Asset Regulatory Authority (VARA).