RAKBANK Secures Approval for UAE Dirham-Backed Stablecoin, Signalling Crypto Shift

RAKBANK has inched a step closer to entering the digital‑asset space after securing in‑principle approval from the UAE’s Central Bank to issue an AED‑backed stablecoin. It’s only a preliminary green light for now, but still a meaningful move for a bank that’s been steadily working its way into regulated crypto services. I remember chatting with a few founders at an Arageek event last year who kept saying that once traditional banks start backing stablecoins, the whole game changes — and honestly, I reckon they were spot on.

The approval means RAKBANK can continue building out the regulatory and operational layers needed before the token goes live. The idea is pretty simple: offer something with the stability of a normal UAE dirham account but built on blockchain rails. That blend of old‑school trust and new‑school efficiency is exactly what many businesses here have been asking for, even if setting it up can sometimes feel like a bit of a faff.

This isn’t the bank’s first dip into digital assets. Back in 2025, it opened the door for retail customers to trade crypto through a regulated brokerage partner — a cautious, rather UAE‑style way of doing things. So, the new stablecoin feels like a natural progression rather than a sudden leap. And believe it or not, the timing aligns neatly with the bank’s 50th anniversary, which adds a bit of symbolic weight to the whole thing.

RAKBANK’s Group CEO, Raheel Ahmed, described the approval as an important milestone that reinforces the bank’s push for innovation grounded in regulation and trust. His comment also touched on the UAE’s wider ambition to build a “future‑ready” financial system — a phrase we hear often, but here it seems to actually translate into concrete action.

There are still several steps ahead, including a pilot phase and possibly a broader rollout, all depending on future approvals. For now, the bank hasn’t shared technical details about how exactly the stablecoin will work, though it emphasises transparency and security as its guiding principles. If they manage to pull it off without drowning users in jargon or over‑engineering — well… I mean, that would be refreshing.

RAKBANK, for those who don’t follow the banking scene closely, has been around since 1976 and remains one of the UAE’s more recognisable home‑grown institutions. With 21 branches, a strong digital offering and its RAKislamic arm for Sharia‑compliant banking, it’s certainly not a newcomer trying to prove itself. Maybe that’s why people seem chuffed to bits about seeing a legacy bank genuinely embrace digital assets instead of tiptoeing around them.

As always, the real test will be how this stablecoin performs once it’s out in the wild — assuming, of course, the final regulatory nod comes through. Until then, it’s another signal that the UAE is doubling down on regulated digital finance, and that’s something startups across the region can definately appreciate.

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