Real-time reserve attestations and audited smart contracts will ensure transparency and integrity
RAKBANK has received in-principle approval from the Central Bank of the UAE to issue an AED-backed stablecoin.
The regulatory green light marks a key development in the bank’s digital asset expansion. The approval remains subject to meeting regulatory and operational requirements before the full launch.
This move positions RAKBANK among the region’s banks advancing blockchain-based payment solutions.
The Central Bank of the UAE granted RAKBANK permission to develop a payment token pegged to the national currency.
The approval process requires the bank to complete additional regulatory checkpoints. RAKBANK must also satisfy operational standards set by the monetary authority.
The bank’s digital asset strategy gained momentum in 2025 when it enabled retail customers to trade cryptocurrencies.
This service operates through a regulated brokerage partner, providing customers access to digital markets. The new stablecoin project builds on these existing capabilities.
Raheel Ahmed, Group CEO of RAKBANK, commented on the milestone during the bank’s 50th anniversary. “Receiving in-principle approval from the Central Bank of the UAE is an important milestone in our digital assets journey,” Ahmed said.
He emphasized the bank’s focus on innovation that is responsible, regulated and built on trust. Ahmed added that the bank remains committed to developing solutions designed around customer needs and aligned with the UAE’s vision.
The proposed stablecoin will maintain a 1:1 peg with the AED. Reserve assets backing the token will be held in segregated accounts under regulatory oversight. This structure aims to guarantee full redemption at par value for token holders.
RAKBANK plans to implement audited smart contracts for the stablecoin’s operations. Real-time reserve attestations will provide transparency regarding backing assets.
These measures address common concerns around stablecoin reserve management and redemption reliability.
The bank describes the project as combining traditional banking stability with blockchain efficiency. The token is designed to serve payment use cases within the UAE’s evolving financial infrastructure.
RAKBANK expects the stablecoin to meet customer needs for digital transaction methods while maintaining regulatory compliance.
The approval comes as regional financial institutions explore blockchain applications. Several banks across the Gulf region have announced digital asset initiatives.
The Central Bank of the UAE has been developing frameworks to accommodate such innovations while maintaining monetary stability and consumer protection standards.
