RAKBANK, also known as the National Bank of Ras Al Khaimah, has received in-principle approval from the Central Bank of the UAE (CBUAE) to issue an AED-backed payment token, or stablecoin.
The approval marks a significant milestone in the bank’s digital asset strategy as it celebrates its 50th anniversary. The issuance is subject to the completion of final regulatory and operational requirements, but it positions the bank to introduce a regulated, secure, and transparent payment solution aligned with the UAE’s evolving digital economy framework.
Bridging traditional banking and blockchain
The proposed stablecoin is designed to merge the reliability of traditional banking with the efficiency of blockchain technology. According to RAKBANK, the token will feature:
- 1:1 AED backing: Funds will be held in segregated, regulated accounts to ensure full redemption capabilities at par value.
- Transparency: The system will utilize audited smart contracts with real-time reserve attestations to maintain operational integrity.
Raheel Ahmed, group CEO of RAKBANK, commented on the strategic move: “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. … It is another step in delivering banking that is digital with a human touch.”
This development follows RAKBANK’s 2025 initiative which enabled retail customers to trade cryptocurrencies through a regulated brokerage partner, establishing a compliant pathway for accessing digital assets.
The bank has stated that further updates regarding a pilot phase and potential expansion will be shared in due course, pending final regulatory approvals.