The National Bank of Ras Al Khaimah (Rakbank), a leading UAE financial institution, has received in-principle approval from the Central Bank of the UAE to launch a dirham-backed stablecoin. This move signals a significant step for the ADX-listed bank in expanding its digital asset services and embracing the evolving financial landscape.
The official launch is contingent upon the completion of all final regulatory and operational requirements.
Ensuring Trust Through Transparency and Regulation
The planned stablecoin will be a payment token pegged 1:1 to the UAE dirham, designed to provide stability and reliability in the digital asset space. To ensure full transparency and user confidence, Rakbank has stated that reserves backing the stablecoin will be held in segregation, supporting full redemption at par value.
Furthermore, the project will feature audited smart contracts and real-time reserve attestations, reinforcing its operational integrity and commitment to regulatory standards.
A Strategic Move in a Pro-Crypto Hub
This initiative builds on Rakbank’s recent ventures into digital assets. In the previous year, the bank enabled its retail customers to trade cryptocurrencies through a regulated brokerage partner, indicating a clear strategy to integrate digital finance into its offerings.
The regulatory environment in the UAE has been a key enabler for such innovations. In July 2024, the central bank updated its virtual asset regulations, specifically allowing the issuance of dirham-backed stablecoins for payments within the country. This follows the approval of AE Coin in December, another dirham-pegged stablecoin, highlighting the UAE’s progressive stance on fostering a regulated digital economy.
About Rakbank
The National Bank of Ras Al Khaimah (Rakbank) is a public joint-stock company headquartered in the Emirate of Ras Al Khaimah and listed on the Abu Dhabi Securities Exchange (ADX). The government of Ras Al Khaimah holds a 49.35 percent stake in the bank. Rakbank reported a strong financial performance in Q3 2025, with net profits increasing by 18 percent year-on-year to AED 706 million ($192 million).
Source: AGBI
