Crypto.com, through Foris Dax, has piloted its AED stablecoin in Dubai.
UAE RAK BANK has received in-principle approval from the Central Bank of the UAE (CBUAE) to issue an AED-backed stablecoin, subject to the completion of regulatory and operational requirements. Further updates on the pilot phase and potential expansion will be shared in due course, subject to regulatory approvals.
According to the press release, this is part of RAK BANK’s digital assets journey and its commitment to align with the UAE’s digital economy framework.
This is not the first time RAK BANK has dabbled in the crypto space. In 2025, it announced that it would offer its retail customers the ability to trade crypto using Dubai-regulated Bitpanda as their crypto exchange.
As per the announcement, the AED stablecoin will combine the confidence of traditional banking and the efficiency of blockchain. It will feature a 1:1 backing AED, regulated to support full redemption at par value. It will include audited smart contracts with real-time reserve attestations that support transparency.
Raheel Ahmed, Group CEO of RAK BANK, noted that this in-principle approval reflects their focus on responsible innovation, regulated and built on trust. He explains, “As we mark our 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. It is another step in delivering banking that is digital with a human touch.”
In October, Dubai’s Department of Finance (DoF), in collaboration with Dubai Land Department (DLD) and with the support of Dubai Pay platform from Digital Dubai Authority, as well as Foris Dax, represented by Crypto.com and Emirates NBD, successfully trialed the payment settlement of cryptocurrencies to AED Dirhams and AED stablecoin for Dubai government services fees.
The DLD explained that the transaction tested successfully was for the “Issuance of a Property Map” service, as part of testing new technologies and systems within a secure environment before the official launch in the future.
Moreover, Abu Dhabi FAB Bank announced that it was working on an AED stablecoin to be built on the ADI Chain. The ADI Blockchain Foundation will develop an AED stablecoin to be issued by First Abu Dhabi Bank, with the support of ADQ, a sovereign investor, and IHC, another investor.
However, neither RAK BANK nor FAB will be the first banks to issue a regulated stablecoin. Al Maryah Community Bank was the first to do so with AE Coin. The AE Coin has been incorporated into not only governmental entities but also private sector companies within the UAE.
The race towards the issuance and utilization of AED stablecoins has progressed in the UAE, with Tether one of the first to announce it would launch an AED stablecoin, which is still clearly out of the picture.
