RAKBANK has received in-principle approval from the Central Bank of the UAE to issue a Dhs-backed payment token, marking a new step in the bank’s plans to expand its regulated digital asset services.
The approval allows RAKBANK to move forward with plans for a stablecoin, subject to meeting all regulatory and operational requirements set by the Central Bank. The bank said the initiative aligns with the UAE’s wider framework for the digital economy and regulated financial innovation.
Digital asset plans
RAKBANK said the proposed stablecoin is designed to link traditional banking systems with blockchain technology. The payment token is expected to be backed 1:1 by the UAE dirham, with reserves held in segregated and regulated accounts to support full redemption at face value.
The bank also plans to use audited smart contracts and real-time reserve attestations to support transparency and operational oversight.
The move follows RAKBANK’s earlier entry into digital assets. In 2025, the bank enabled retail customers to trade cryptocurrencies through a regulated brokerage partner, offering customers access to digital assets within a compliant structure.
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.
“As we mark our 50th anniversary, we remain committed to developing solutions that are designed around our customers’ needs and aligned with the UAE’s vision for a future-ready financial system. It is another step in delivering banking that is digital with a human touch.”
RAKBANK said further details on the pilot phase and any potential expansion will be announced later, subject to final regulatory approvals.
