RAKBANK Secures Central Bank Approval to Launch AED Stablecoin—UAE’s Digital Dirham Arrives

Another brick in the wall—or rather, another token on the chain. RAKBANK just got the green light from the UAE's central bank to mint its own dirham-pegged stablecoin, marking a pivotal shift from traditional finance into the programmable economy.

The Regulatory Stamp

Forget speculative crypto wild west—this is institutional adoption with a government seal. The central bank's approval isn't just a nod; it's a full-throated endorsement for a regulated digital asset native to the UAE's financial system. It turns the Emirati dirham into code.

Why a Bank-Backed Stablecoin Matters

Stablecoins aren't new, but a licensed commercial bank issuing one directly? That cuts through the noise. It means instant settlements, 24/7 liquidity, and programmable money—all wrapped in regulatory compliance. Think corporate treasury operations moving millions without waiting for SWIFT, or remittances settling in seconds for fractions of current costs.

The Ripple Effect

Watch other regional banks scramble. RAKBANK's move pressures competitors to launch their own digital assets or risk obsolescence. It also sets a template: work with regulators, don't bypass them. The UAE isn't just allowing crypto; it's building its own version.

A Cynical Take

Let's be real—banks love stablecoins because they create a shiny new product line without the volatility. It's finance's favorite trick: repackage existing money, add blockchain buzzwords, and call it innovation. Still, if it makes cross-border payments cheaper and faster, maybe even a cynical jab can't dull the shine.

The bottom line? The UAE's financial future is being written in smart contracts, and RAKBANK just drafted the first paragraph.

TLDR

• RAKBANK has received in-principle approval from the Central Bank of the UAE to issue an AED-backed stablecoin.
• The stablecoin will be fully backed by dirham reserves held in segregated and regulated accounts.
• RAKBANK plans to use the stablecoin for digital payments, asset tokenization, and cross-border settlements.
• The reserves will be audited independently and real-time attestations will be enabled through smart contracts.
• This approval places RAKBANK among several UAE banks developing regulated AED stablecoins under national regulations.

RAKBANK has received in-principle approval from the Central Bank of the UAE (CBUAE) to launch a regulated AED stablecoin, becoming the latest institution to advance private digital currency solutions as the government’s own CBDC rollout remains on hold.

The approval authorizes issuance under the Payment Token Services Regulation and confirms RAKBANK’s increasing role in the UAE’s digital assets framework. The coin will be fully backed, regulated, and focused on payments, tokenization, and retail use through existing digital platforms.

RAKBANK’s Stablecoin to Offer 1:1 AED Backing and Retail Access

RAKBANK confirmed it will issue the AED stablecoin with full 1:1 backing by dirham reserves held in segregated accounts. These accounts will remain under regulatory oversight to ensure redeemability and financial transparency. The bank stated that real-time attestation through smart contracts will support public trust and compliance.

The reserves will undergo independent audits, aligning with CBUAE’s policies on consumer protection and digital risk management. Raheel Ahmed, Group CEO of RAKBANK, said:

“This reflects our focus on innovation that is responsible, regulated and built on trust.”

The bank plans to integrate the coin into its digital payment offerings.

The stablecoin will be usable for digital payments, asset tokenization, and cross-border settlements. It may also connect with the bank’s existing crypto trading features launched earlier. The “in-principle” status is conditional, pending full compliance with operational requirements.

RAKBANK Joins Other UAE Banks in Launching AED Stablecoins

RAKBANK joins Zand Bank and Al Maryah Community Bank in launching AED-backed stablecoins under UAE regulatory frameworks. Zand Bank introduced its Zand AED token in November 2025, followed by AE Coin from AED Stablecoin LLC in October. Al Maryah Community Bank was first to issue a regulated stablecoin, positioning AE Coin for both public and private sector use.

First Abu Dhabi Bank (FAB) also confirmed it is developing an AED stablecoin in partnership with ADQ and IHC. The stablecoin will be built on ADI Chain and issued by FAB with blockchain support from the ADI Blockchain Foundation. This will expand the scope of institutional stablecoins in Abu Dhabi’s financial ecosystem.

MBANK was the first to roll out a compliant stablecoin, setting a precedent for other UAE banks. Each stablecoin project follows the CBUAE’s updated legal frameworks introduced in 2024 and 2025. These developments reflect broader adoption of tokenized payments across both government and banking channels.

CBUAE Delays Digital Dirham Launch as Private Coins Advance

The Central Bank had initially scheduled the Digital Dirham’s launch for Q4 2025 under the Financial Infrastructure Transformation (FIT) program. However, it postponed the release after halting CBDC testing in November 2025. Reports cited privacy, cybersecurity, and systemic concerns as reasons for the pause.

In July 2025, CBUAE documents confirmed the Digital Dirham WOULD serve as legal tender but lacked a new rollout timeline. As of January 2026, no updated launch date has been issued for the project. The initiative remains under review while stablecoin regulations advance.

The UAE has taken steps to support legal clarity, including a federal law granting CBDCs equal legal standing to physical cash. However, the current focus has shifted toward private-sector stablecoins that operate under new regulatory regimes. These private efforts are positioned to complement, not replace, the future Digital Dirham.

In October 2025, Dubai’s Department of Finance and Land Department trialed crypto and AED stablecoin payments for government services. The pilot included participation from Emirates NBD and Crypto.com via the Dubai Pay platform. The tested transaction involved the issuance of a property map using tokenized AED settlement.