RAKBANK Secures In-Principle Approval to Launch AED Stablecoin

Highlights:

• RAKBANK has received approval from CBUAE to issue an AED-backed stablecoin.
• The stablecoin will have a 1:1 backing with AED in regulated accounts.
• UAE is expanding stablecoin usage beyond crypto firms to licensed banks.

RAKBANK has announced that it received an in-principle approval from the Central Bank of the UAE to issue an AED-backed stablecoin. The approval marks a milestone towards the continued digital transformation strategy of the bank. Moreover, the initiative enhances the efforts of the UAE to establish a regulated and effective digital payments system.

The stablecoin is expected to enhance the confidence of traditional banking with the efficiency of the blockchain. As per the announcement, the token will have full 1:1 AED backing held in regulated accounts. Real-time reserve attestation and independent audits are going to ensure the transparency and integrity of operations.

This development aligns with the broader financial infrastructure transformation agenda in the UAE. In addition, it follows the ongoing push of the country in modernizing payment mechanisms and supporting innovation within regulated financial institutions.

RAKBank gets UAE Central Bank approval for dirham-backed stablecoinhttps://t.co/sCgN9jgOpJ pic.twitter.com/RboGz3eHfx

— Khaleej Times (@khaleejtimes) January 7, 2026

RAKBANK Expands Digital Asset Services

RAKBANK keeps on reinforcing its position in the digital asset ecosystem. In July 2025, it added cryptocurrency trading to its mobile banking app through a partnership with Bitpanda Technology Solutions.

The partnership offered retail customers the opportunity to trade in digital assets in a regulated and secure setting under the watch of Dubai’s Virtual Assets Regulatory Authority. Raheel Ahmed, Group CEO of RAKBANK, said the approval marks the bank’s determination to pursue innovation under regulation.

He added:

“Getting in-principle approval from the Central Bank of the UAE is a pivotal moment in our digital assets journey. The initiative reflects the bank’s commitment to trust, transparency, and customer-centric solutions as it celebrates its 50th anniversary.”

RAKBANK’s new approval places it among the list of the UAE-based institutions that are looking to experiment with the dirham-backed stablecoin. This move also demonstrates how traditional banks are gradually opening up to the idea of blockchain-based payment solutions.

Expanding the UAE’s Stablecoin Landscape

The framework of stablecoins in the UAE has evolved rapidly during the last year. In November 2025, Zand Bank received the approval of Zand AED, the first regulated multi-chain dirham-linked stablecoin in the country. Meanwhile, telecom giant e& (Etisalat) has already introduced its AE Coin pilot, which facilitates digital payments for local services.

A global first in telecom payments
AE Coin partners with e& UAE, making it the world’s first telecom giant to accept a Central Bank–licensed stablecoin
Millions of users will soon pay bills recharge & transact digitally using via AEC Wallet
Born in the UAE Built for the world pic.twitter.com/xeOW5PsOij

— AE Coin (@AECoin_UAE) December 10, 2025

These initiatives demonstrate a broader objective of the UAE to establish a transparent and interoperable digital asset foundation. The endorsement of the Central Bank for dirham-referenced payment tokens underscores the ideology of modernizing local payments and the efficiency of international payments.

Additionally, the multi-pillar strategy of the CBUAE entails coordination of various agencies, such as Abu Dhabi Global Market (ADGM) and Dubai’s VARA. Together, they are drafting a unified regulatory framework concerning stablecoins and tokenized financial products. Despite the progress, the central bank digital currency of the UAE (the Digital Dirham) has faced delays. The project, initially scheduled to be launched for retail late in 2025, is still under evaluation due to concerns over cybersecurity and privacy.

Meanwhile, RAKBANK’s proposed stablecoin will fill the gap by offering a regulated, blockchain-based alternative for payment and settlements. The pilot phase and potential expansion of the token should be expected once all regulatory conditions are met.