RAKBank is now approved by the UAE central bank to proceed with its dirham stablecoin, backed 1:1 by reserves, with adoption and network details pending.
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RAKBank stablecoin plans are advancing after the bank received in-principle approval from the Central Bank of the United Arab Emirates.

This approval allows work to continue on a regulated dirham-backed payment token as the country expands its supervised digital payment system.

RAKBbank Stablecoin Approval and What It Covers

RAKBank stablecoin approval means the Central Bank of the United Arab Emirates has accepted the proposal in principle, while final checks are still required.

The bank must meet specific regulatory and operational conditions before issuing the token to the public.

It is worth noting that RAKBank is already licensed and supervised by the central bank, which shortens the process but does not remove oversight.

According to the bank, the proposed token will be fully backed on a one-to-one basis by UAE dirhams.

These funds will be held in segregated accounts under regulation. The reserves will be supported by audited smart contracts and real-time verification.

This structure is meant to make sure that every issued token is matched by actual cash held within the banking system.

The approval marks another step in RAKBank’s wider digital push. In 2025, the lender allowed retail customers to trade cryptocurrencies through a regulated brokerage partner.

The stablecoin plan shows a shift toward payment use rather than trading activity.

Bank leadership described the approval as an important step that aligns innovation with regulation and trust.

While stablecoin use continues to grow in the UAE, other regions are also pushing adoption. Recently, Malaysia’s Johor Crown Prince has launched a ringgit-backed stablecoin to support crypto-based payments.

Where RAKBank Stablecoin Fits in the UAE Market

The planned RAKBank stablecoin joins a growing list of payment token efforts in the UAE. The country operates a multi-layer regulatory setup.

The central bank oversees payment tokens, while Abu Dhabi Global Market and Dubai Virtual Assets Regulatory Authority handle other digital asset activities.

This approach allows stablecoins to grow within clear limits. Along the same lines, Ripple’s stablecoin RLUSD is already active in the country.

In June 2025, Ripple’s stablecoin entered the Dubai International Financial Centre.

Dirham-backed tokens are intended to improve local payments, government transactions, and cross-border transfers.

The UAE handles large remittance flows, making efficiency a key focus. Telecom firms and global crypto companies have also secured approvals, showing increased competition.

Nevertheless, questions remain, as RAKBank has not disclosed the blockchain network that will support the token or how it will connect with existing payment systems.

Adoption will depend on pricing, ease of use, and real demand. The RAKBank stablecoin impact will be judged by daily use, not approval alone.

In another major development, Visa rolled out stablecoin settlement in the United States using Circle’s USDC on the Arc blockchain.

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