RAKBank Receives Approval to Launch UAE Dirham-Backed Stablecoin
RAKBank has secured in-principle approval from the Central Bank of the UAE to introduce a dirham-pegged stablecoin, marking a pivotal step in the country's digital finance evolution. The bank must still clear regulatory and operational hurdles before public launch.
The stablecoin will maintain a 1:1 reserve ratio with UAE dirhams held in segregated accounts, ensuring full redeemability. Audited smart contracts and real-time reserve attestations will provide transparency, allowing users to verify backing at any time.
"This approval reflects our commitment to regulated innovation," said Raheel Ahmed, Group CEO of RAKBank. The institution, with assets exceeding AED 88.3 billion, previously enabled retail crypto trading through a Bitpanda partnership in July 2025.
The MOVE enters RAKBank into a competitive arena where multiple UAE institutions are vying for dominance in the digital dirham space. Zand Bank has already made significant strides in this emerging market segment.
