RAKBank Secures UAE Central Bank Nod for Dirham-Backed Stablecoin
RAKBank has cleared a critical regulatory hurdle with in-principle approval from the Central Bank of the United Arab Emirates (CBUAE) to develop a dirham-pegged stablecoin. The greenlit project positions the bank as a pioneer in UAE's regulated digital payments ecosystem, with plans to maintain full 1:1 fiat backing and segregated reserves under banking supervision.
The stablecoin initiative accelerates RAKBank's digital strategy following its 2025 roadmap. Unlike decentralized alternatives, this institutionally-backed asset will undergo smart contract audits and compliance checks—a deliberate contrast to speculative crypto projects. No existing cryptocurrencies like BTC or ETH are involved in this fiat-collateralized system.
Market observers note the approval signals CBUAE's measured embrace of blockchain infrastructure while maintaining strict oversight. The MOVE coincides with growing Middle Eastern institutional interest in tokenized settlement assets, though RAKBank's offering remains distinct from exchange-traded instruments on platforms like Binance or Coinbase.
