Rakbank Gets UAE Central Bank Approval For Dirham-Backed Stablecoin

2026-01-07 02:34:33

(MENAFN- Khaleej Times)

RAKBank on Wednesday said it has received in-principle approval from the Central Bank of the UAE (CBUAE) to issue an AED-backed stablecoin.

The lender said further regulatory and operational requirements are required, and details about the pilot phase and potential expansion will be revealed in due course.

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A stablecoin is a type of cryptocurrency designed to have a stable value, unlike volatile coins like Bitcoin, by pegging it to a stable asset, usually a fiat currency like the US dollar, or sometimes commodities like gold.

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In November 2025, the Central Bank of the UAE approved Zand, the UAE's digital bank, to launch Zand AED, the country's first regulated, multi-chain UAE dirham-backed stablecoin on public blockchains.

“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,” said Raheel Ahmed, Group CEO of RAKBank.

The RAKBank's stablecoin is expected to feature 1:1 backing of the UAE dirham, to be held in segregated, regulated accounts to support full redemption at par value.

In 2025, RAKBank enabled its retail customers to trade crypto through a regulated brokerage partner, providing a compliant and secure pathway for customers to access digital assets.

“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,” said Ahmed.

The total market capitalisation of stablecoins jumped to $300 billion for the first time in October 2025, led by Tether's USD-pegged stablecoins USDT and Circle's USDC. On Wednesday, the total size of the global stablecoin market was $308.21 billion.

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