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yesterday

RAKBank Gets In-Principle Approval From UAE Central Bank to Issue Dirham-Backed Stablecoin

The step advances the UAE’s push to channel on-shore crypto payments through regulated dirham-referenced tokens.

RAKBank's stablecoin issuance is subject to the completion of regulatory and operational requirements. Photo: RAKBank
RAKBANK has secured in-principle approval from the UAE Central Bank to launch a regulated AED-backed stablecoin. Image: Supplied

Overview

  • RAKBank said issuance remains subject to final regulatory and operational clearances, with pilot-phase updates to follow.
  • The planned token is expected to be fully redeemable at par, backed one-to-one by AED held in segregated, regulated accounts.
  • Audited smart contracts with real-time reserve attestations are intended to provide transparency and operational integrity.
  • Under the Central Bank’s 2024 Payment Token Services rules, only dirham-backed stablecoins can be used for domestic crypto payments in the UAE.
  • In 2025, RAKBank enabled retail crypto trading via a regulated brokerage partner as part of its broader digital assets strategy.