UAE Central Bank Grants RAKBANK Initial Approval for AED Stablecoin

• RAKBANK receives initial approval to launch an AED-backed stablecoin from UAE Central Bank.
• The stablecoin will offer 1:1 AED backing with audited smart contracts for transparency.
• This move strengthens UAE’s position as a hub for regulated digital assets and innovation.

RAKBANK, Ras Al Khaimah, has received initial approval from the UAE Central Bank to launch a stablecoin tied to the UAE dirham (AED). Final approval will depend on completing all regulatory and operational requirements. This marks an important step in the bank’s digital asset strategy.

Major Step in RAKBANK’s Digital Assets Journey

RAKBANK’s move highlights its commitment to providing regulated, secure, and transparent financial solutions that support the UAE’s growing digital economy.

Raheel Ahmed, Group CEO of RAKBANK, said the approval reflects the bank’s dedication to responsible, regulated innovation that meets customer needs and supports the UAE’s vision for a future-ready financial system.

The initiative builds on RAKBANK’s earlier efforts. These include enabling retail customers to trade cryptocurrencies through a regulated partner in 2025, providing a secure and compliant path for digital asset investment.

What to Expect from the Stablecoin

The AED-backed stablecoin will combine the reliability of traditional banking with the speed of blockchain. Key points include:

• 1:1 AED backing: Every coin will be fully backed by funds held in regulated accounts.
• Audited smart contracts: Reserves will be regularly audited to ensure transparency.
• Next steps: Details on the pilot phase and future expansion will be shared once approved by regulators.

Related: Tether’s New Stablecoin: Pegged to UAE Dirham

RAKBANK, officially the National Bank of Ras Al Khaimah P.S.C., was founded in 1976 and is one of the UAE’s oldest and most dynamic banks. It offers personal, business, and wholesale banking across 21 branches and advanced digital channels.

Its RAK Islamic division provides Sharia-compliant banking services, both online and offline. The bank is publicly traded on the Abu Dhabi Securities Exchange (ADX), with the Government of Ras Al Khaimah as the majority shareholder.

UAE’s Vision Positions It as a Global Stablecoin Hub

Building on these initiatives, the UAE has been preparing for stablecoins since 2017–2018, ahead of global adoption. Regulators such as Abu Dhabi’s FSRA and Dubai’s VARA have established clear rules, culminating in the Central Bank’s 2024 Payment Token Services Regulation. The UAE promotes innovation and ensures financial stability by viewing stablecoins as tools for economic growth rather than just speculation.

With nearly 90% of residents being expatriates, there is strong demand for faster, cheaper, and more secure remittances. Stablecoins also facilitate cross-border trade, liquidity management, and supply chain payments, particularly with Asia and Africa. 

Clear regulations even allow yield-bearing stablecoins, creating opportunities for both retail and institutional investors and positioning the UAE as a global first mover.

Related: UAE’s First Regulated Stablecoin to Be Issued by First Abu Dhabi Bank