As the UAE’s Digital Dirham CBDC is delayed, RAKBANK is stepping into the gap. The bank has received in‑principle approval from the Central Bank of the UAE to issue a dirham‑backed stablecoin under the Payment Token Services regulation. CEO Raheel Ahmed called the nod “an important milestone in our digital assets journey” built on regulation and trust.
- 🏦 1:1 backing: every token fully collateralised by dirham reserves held in segregated, regulated accounts.
- 🔍 Transparency and audits: reserves will be independently audited with real‑time attestations via smart contracts.
- 🌐 Use cases: designed for digital payments, asset tokenisation and cross‑border settlements; planned integration with RAKBANK’s retail crypto trading platform.
This approval shows the UAE is embracing regulated crypto. RAKBANK — one of the country’s oldest banks with assets of AED 88.3 billion partnered with Bitpanda in 2025 to offer crypto trading. With the Digital Dirham rollout delayed, private banks launching stablecoins could accelerate Web3 adoption and keep the UAE at the forefront of fintech innovation.
What’s your view on bank‑issued stablecoins? Could RAKBANK’s initiative compete with a future CBDC?