RAKBANK Gets Green Light for UAE Dirham-Backed Stablecoin

RAKBANK has received conditional approval to issue an AED-backed stablecoin, fully backed by dirhams and regulated for transparency. The initiative aligns with the UAE’s digital economy vision and awaits final regulatory clearances.

RAKBANK has received in-principle approval from the Central Bank of the UAE to issue an AED-backed stablecoin, pending completion of regulatory and operational requirements. The stablecoin will be fully backed 1:1 by UAE dirhams held in segregated, regulated accounts, ensuring full redemption at par value. The initiative is part of RAKBANK’s strategy to integrate digital assets within regulated banking channels, using audited smart contracts and real-time reserve attestations for transparency. This move aligns with the UAE’s digital economy framework and follows similar projects by other local banks. The approval is conditional, requiring further audits, operational testing, and regulatory clearances before launch. RAKBANK’s approach emphasizes security, transparency, and compliance, with further updates on pilot testing and expansion expected as regulatory approvals progress.