Key takeaways
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RAKBANK has received in-principle approval from CBUAE to issue a fully AED-backed stablecoin for payments.
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This approval signals growing momentum for regulated private sector digital finance in the UAE.
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Delays in the rollout of Digital Dirham CBDC have allowed banks like RAKBANK to lead stablecoin innovation.
As the highly anticipated UAE Digital Dirham quietly passes its initial launch window, private institutions are moving faster.
RAKBANK, one of the oldest banks in the country, is moving forward and received regulatory approval to launch an AED-backed stablecoin.
RAKBANK approval in principle of the CBUAE authorizes the bank to issue an AED-backed stablecoin under the Payment Token Services Regulation.
Raheel Ahmed, CEO of RAKBANK Group, said:
“Receiving approval in principle from the Central Bank of the UAE is an important milestone in our digital assets journey. It reflects our focus on responsible, regulated and trust-based innovation. It is another step in delivering digital banking with a human touch.”
This “in principle” status is a preliminary nod, subject to compliance with remaining regulatory and operational requirements prior to full launch.
The main features of the proposed stablecoin include:
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1:1 support: Fully backed by AED reserves held in segregated and regulated accounts to ensure stability and redemption possibility.
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Transparency and compliance: Reserves will be subject to independent audits, with real-time attestations via smart contracts, in line with CBUAE’s focus on risk management and consumer protection.
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Use cases: Designed for digital payments, asset tokenization and cross-border settlements, potentially integrating with RAKBANK’s existing crypto trading platform for retail access.
This makes RAKBANK the latest in a series of UAE institutions to venture into stablecoins, following approvals from entities such as Zand Bank (Zand AED in November 2025) and AED Stablecoin LLC (AE Coin in October 2024).
RAKBANK is one of the oldest banks in the UAE, with assets exceeding AED 88.3 billion (USD 24 billion) as of mid-2025.
Traditionally focused on retail, SME and corporate banking, RAKBANK has increasingly embraced fintech and digital innovations to remain competitive in the UAE’s technology-driven economy.
In July 2025, RAKBANK became the first conventional bank in the UAE to integrate cryptocurrency trading directly into its mobile application, in partnership with Bitpanda Technology Solutions under the supervision of Dubai’s Virtual Assets Regulatory Authority (VARA).
