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22h ago

RAKBank Wins In-Principle Nod to Issue AED-Backed Stablecoin From UAE Central Bank

The conditional approval signals the UAE’s drive for tightly regulated dirham payment tokens under strict reserve and transparency rules.

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

  • The authorization remains in-principle and depends on RAKBank completing specified regulatory and operational steps before any launch.
  • The bank says the token will maintain 1:1 dirham backing with reserves in segregated, supervised accounts, plus audited smart contracts and real-time attestations.
  • RAKBank plans applications in digital payments, asset tokenization and cross-border settlement, with pilot details and technical infrastructure yet to be disclosed.
  • Under the Central Bank’s Payment Token Services regime, only dirham-backed stablecoins can be used for merchant payments in the UAE, with separate rules in financial free zones.
  • The move adds to a growing stablecoin roster that includes AE Coin and Zand AED, alongside projects from FAB, Circle and Ripple, as the Digital Dirham timeline remains on hold.