On January 7, 2026, RAKBank achieved a groundbreaking milestone by receiving in-principle UAE stablecoin approval from the Central Bank of the UAE (CBUAE). This landmark decision allows RAKBank to become the first conventional bank in the country to issue a regulated, dirham-backed payment token. This move aligns with the UAE’s broader vision of a digital-first economy and follows the strict Payment Token Services Regulation implemented by the CBUAE to ensure financial stability and consumer protection in the rapidly evolving digital assets space.
Key Features of the RAKBank Stablecoin
The newly approved AED-backed stablecoin is designed to provide the stability of the UAE Dirham with the technological efficiency of blockchain.
| Feature | Specification |
| Pegging Ratio | 1:1 with the UAE Dirham (AED) |
| Reserve Management | Held in segregated, regulated accounts |
| Security | Audited smart contracts with real-time attestations |
| Regulatory Framework | CBUAE Payment Token Services Regulation |
A New Chapter for RAKBank’s 50th Anniversary
The UAE stablecoin approval comes as RAKBank celebrates its 50th anniversary, marking its transition into a future-ready financial institution. Raheel Ahmed, Group CEO of RAKBank, emphasized the importance of this development:
“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. This is another step in delivering banking that is digital with a human touch.”
Building on the 2025 Crypto Momentum
This UAE stablecoin approval is not RAKBank’s first foray into the digital world. In August 2025, the bank successfully launched a retail crypto brokerage service in partnership with Bitpanda, allowing customers to trade digital assets directly from their bank accounts. The addition of a native stablecoin will now allow for:
- Instant Settlements: Reducing the time taken for domestic and cross-border payments.
- Lower Fees: Eliminating intermediary costs associated with traditional wire transfers.
- Programmable Payments: Using smart contracts for automated business transactions.
Competition in the UAE Digital Asset Space
While RAK Bank is the first conventional bank to get the nod, the race for the “Digital Dirham” is heating up. Other key players in the ecosystem include:
- Zand: The digital bank that received full approval for its ZAND AED stablecoin in late 2025.
- AE Coin (e&): Etisalat’s venture into regulated stablecoins for utility bill payments.
- Circle & Ripple: Global giants that have secured local approvals for USD-pegged tokens (USDC and RLUSD) for institutional use.1
What’s Next for Users?2
With the in-principle UAE stablecoin approval secured, RAKBank will now enter a pilot phase to test the token’s interoperabil3ity and security. For residents and businesses, this means that soon, paying for rent, groceries, or international trade could be as simple as sending a digital token, with the full backing and trust of a regulated UAE bank.
