RAKBANK Wins Approval for AED Stablecoin as UAE’s Digital Dirham Skips 2025 Launch

Key Takeaways

• RAKBANK has received in-principle approval from the CBUAE to issue a fully AED-backed stablecoin for payments.

• The approval signals growing momentum for regulated, private-sector digital finance in the UAE.

• Delays in the Digital Dirham CBDC rollout have opened space for banks like RAKBANK to lead stablecoin innovation.

As the UAE’s long-anticipated Digital Dirham quietly slips past its original launch window, private institutions are moving faster.

RAKBANK, one of the country’s oldest banks, is pressing ahead and has received regulatory approval to launch an AED-backed stablecoin. 

RAKBANK’s in-principle approval from the CBUAE authorizes the bank to issue an AED-backed stablecoin under the Payment Token Services Regulation. 

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. It is another step in delivering banking that is digital with a human touch.”

This “in-principle” status is a preliminary nod, subject to fulfilling remaining regulatory and operational requirements before full launch.

Key features of the proposed stablecoin include:

• 1:1 Backing: Fully backed by AED reserves held in segregated, regulated accounts to ensure stability and redeemability.

• Transparency and Compliance: Reserves will be subject to independent audits, with real-time attestations via smart contracts, aligning with CBUAE’s emphasis on risk management and consumer protection.

• Use Cases: Designed for digital payments, tokenization of assets, and cross-border settlements, potentially integrating with RAKBANK’s existing crypto trading platform for retail access.

This makes RAKBANK the latest in a series of UAE institutions to venture into stablecoins, following approvals for entities like Zand Bank (Zand AED in November 2025) and AED Stablecoin LLC (AE Coin in October 2024).

RAKBANK is one of the UAE’s oldest banks with assets exceeding AED 88.3 billion ($24 billion USD) as of mid-2025. 

Traditionally focused on retail, SME, and corporate banking, RAKBANK has increasingly embraced fintech and digital innovations to remain competitive in the UAE’s tech-forward economy. 

In July 2025, RAKBANK became the first conventional UAE bank to integrate cryptocurrency trading directly into its mobile app, partnering with Bitpanda Technology Solutions under the oversight of Dubai’s Virtual Assets Regulatory Authority (VARA).