RAKBank joins the growing list of institutions developing regulated dirham-backed digital payment tokens
The UAE’s dirham stablecoin ecosystem continues to expand as RAKBank receives in-principle approval from the Central Bank of the UAE (CBUAE) to issue a dirham-backed payment token. The move signals increasing participation from traditional banks in the country’s regulated digital asset landscape.
The in-principle approval allows RAKBank to proceed with its stablecoin plans, subject to meeting final regulatory and operational requirements. Once launched, the stablecoin will be fully backed 1:1 by UAE dirhams, held in segregated and regulated accounts, and managed through audited smart contracts with real-time reserve attestations.
This initiative builds on RAKBank’s 2025 entry into retail cryptocurrency trading, marking a broader shift toward regulated digital asset services.
The UAE operates a multi-pillar digital asset framework, with multiple authorities overseeing stablecoins, virtual asset service providers, and tokenized financial products. Within this system, dirham-referenced payment tokens are designed to enhance domestic payments, cross-border remittances, and digital economy initiatives.
The stablecoin race now includes banks, telecom firms, and global financial players. Regulated dirham stablecoins are being explored for bill payments, institutional settlements, and regional expansion, while Ras Al Khaimah is positioning itself as a Web3 and digital economy hub through DAO-focused legal frameworks and startup accelerators.
Key questions remain around blockchain infrastructure, interoperability, and real-world adoption. While regulatory foundations are taking shape, widespread use will depend on practical integrations and cost advantages for businesses and consumers.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.