Image: RAKBANK
RAKBANK has received in-principle approval from the Central Bank of the UAE (CBUAE) to issue a dirham-backed stablecoin.
The approval positions RAKBANK alongside a growing roster of UAE financial institutions racing to launch regulated digital tokens, as the global stablecoin market surpasses $308bn and settlement volumes reach $9tn annually, an 87 per cent jump from the previous year, according to Moody’s 2026 Cross-Industry Outlook report.
These figures reflect rapid uptake as stablecoins are increasingly used for liquidity management, collateral transfers and settlement in tokenised markets.
The UAE has emerged as a frontrunner in Middle East stablecoin regulation, with authorities approving multiple dirham-backed tokens.
Private-sector stablecoins are now viewed as complementary infrastructure rather than a substitute for the for the eventual CBDC (central bank digital currency).
Read: UAE rebrands the Dirham and readies digital currency launch
Important milestone for RAKBANK
“Receiving in-principle approval from the Central Bank of the UAE is an important milestone in our digital assets journey,” said Raheel Ahmed, Group CEO of RAKBANK. “It reflects our focus on innovation that is responsible, regulated and built on trust.”
The planned stablecoin will be fully backed 1:1 by UAE dirham reserves held in segregated, regulated accounts, with audited smart contracts providing real-time reserve attestations.
The bank must complete additional regulatory and operational requirements before launching the token to the public.
The announcement comes as the bank marks its 50th anniversary. “We remain committed to developing solutions that are designed around our customers’ needs and aligned with the UAE’s vision for a future-ready financial system,” Ahmed said.
Further details on the pilot phase and potential expansion will be disclosed subject to regulatory approvals.
The bank, one of the UAE’s oldest lenders with assets exceeding Dhs88bn ($24bn), has been building its digital asset capabilities.
In 2025, the bank became the first conventional UAE bank to integrate cryptocurrency trading into its mobile app through a partnership with regulated brokerage Bitpanda Technology Solutions.
Other related developments
The approval intensifies competition in the UAE’s stablecoin market. Zand, the country’s digital bank, received full approval in November 2025 for Zand AED, the first regulated multi-chain dirham stablecoin on public blockchains. AE Coin, another licensed payment token, gained regulatory clearance in late 2024.
First Abu Dhabi Bank, the UAE’s largest lender, announced plans in April 2025 to launch its own dirham stablecoin in partnership with sovereign wealth fund ADQ and conglomerate International Holding Company. International players including Circle and Ripple have also secured regulatory approvals for their dollar-backed tokens in Abu Dhabi.
Read: IHC, ADQ, FAB launch dirham-backed stablecoin
The CBUAE established comprehensive rules for stablecoins through its Payment Token Services Regulation, which took effect in July 2024. Under the framework, dirham-pegged tokens are regulated exclusively by the central bank, while foreign payment tokens face restrictions limiting their use to virtual asset transactions.
UAE authorities view regulated stablecoins as tools to modernise payments, enhance remittances, and support the country’s digital economy ambitions.
Stablecoin activity now accounts for 51 per cent of the UAE’s cryptocurrency market, with active wallets using stablecoins globally growing 53 per cent to over 30 million users between February 2024 and February 2025 (according toThe State of Stablecoins 2025: Supply, Adoption & Market Trends from Artemis and Dune).
