RAKBank is preparing to enter the UAE’s growing stablecoin ecosystem after receiving in-principle approval from the Central Bank of the United Arab Emirates to issue a dirham-backed payment token.
The approval allows the bank to proceed subject to meeting final regulatory and operational requirements before live issuance.
According to the bank, the forthcoming stablecoin will be fully backed on a 1:1 basis by UAE dirhams held in segregated, regulated accounts. It will be governed by audited smart contracts and supported by real-time reserve attestations.
The initiative builds on RAKBank’s earlier move to enable retail cryptocurrency trading through a regulated brokerage partner.
UAE policymakers see dirham-referenced payment tokens as a tool to modernize domestic payments, enhance cross-border remittances, and support the digital economy.
RAKBank’s entry highlights how the country’s stablecoin race is expanding beyond crypto-native firms to include traditional banks, telecom players, and global issuers operating under a structured regulatory framework.
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