RAKBANK has received in-principle approval from the Central Bank of the UAE (CBUAE) to issue an AED-backed payment token.
The approval represents a further step in the bank’s digital assets strategy. It aligns with the UAE’s regulatory framework for digital finance.
The move follows earlier initiatives by RAKBANK to expand its digital asset capabilities.
In 2025, the bank enabled retail customers to trade cryptocurrencies through a regulated brokerage partner.
When launched, the stablecoin is expected to be backed on a 1:1 basis by the UAE dirham.
Reserves will be held in segregated and regulated accounts to support redemption at par value.
The bank said the token would also use audited smart contracts. Real-time reserve attestations are intended to support transparency and operational integrity.
Raheel Ahmed, Group CEO of RAKBANK, said:
“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.”
RAKBANK said further details on the pilot phase and any potential expansion would be announced at a later stage, subject to regulatory approval.
Featured image credit: Edited by Fintech News Middle East, based on image by tahantanha10 via Freepik
