RAKBANK Secures In-principle Approval For AED-backed Stablecoin

The approval represents a significant step in the bank’s digital assets journey and aligns with the UAE’s broader push to develop a regulated and transparent digital economy. RAKBANK said the proposed stablecoin is designed to combine the security and trust of traditional banking with the efficiency and programmability of blockchain technology.

RAKBANK advances digital assets

When launched, the stablecoin will be fully backed on a one-to-one basis by the UAE dirham, with reserves held in segregated and regulated accounts to support full redemption at par value. The token is also expected to feature audited smart contracts and real-time reserve attestations, supporting transparency, operational integrity and customer confidence.

RAKBANK said the development builds on its expanding digital asset capabilities. In 2025, the bank enabled its retail customers to trade cryptocurrencies through a regulated brokerage partner, providing a compliant and secure route for customers to access digital assets within the UAE’s regulatory framework.

Raheel Ahmed, Group Chief Executive of RAKBANK, said the approval reflects the bank’s approach to responsible innovation. “Receiving in-principle approval from the Central Bank of the UAE is an important milestone in our digital assets journey. It reflects our focus on innovation that is responsible, regulated and built on trust,” he said.

He added that the move comes as the bank marks its 50^th anniversary. “As we mark our 50^th anniversary, we remain committed to developing solutions that are designed around our customers’ needs and aligned with the UAE’s vision for a future-ready financial system. It is another step in delivering banking that is digital with a human touch.”

Further updates on the pilot phase and potential expansion of the stablecoin will be announced in due course, subject to final regulatory approvals.

Founded in 1976, RAKBANK is one of the UAE’s longest-established banks and is majority-owned by the Government of Ras Al Khaimah. Its shares are publicly traded on the Abu Dhabi Securities Exchange (ADX). The bank operates a network of 21 branches across the UAE and offers personal, business, wholesale and Islamic banking services through its RAKislamic unit.

The move places RAKBANK among a growing group of regional lenders exploring regulated stablecoins as a means to support digital payments, settlement efficiency and innovation within the financial system.