The post RAKBank Joins UAE Stablecoin Push as Banks Move Onchain appeared on BitcoinEthereumNews.com.

Fintech RAKBank is preparing to enter the United Arab Emirates’ rapidly developing stablecoin landscape after receiving in-principle approval from the Central Bank of the United Arab Emirates (CBUAE) to issue a UAE dirham-backed payment token. The approval signals that the CBUAE has endorsed the bank’s stablecoin plans in principle, pending the completion of final regulatory and operational requirements. As a bank already licensed and supervised by the central bank, RAKBank must now meet those conditions before proceeding with any live issuance. Key takeaways RAKBank has received in-principle approval, not final authorization, to issue a dirham-backed stablecoin. The token will be fully backed 1:1 by dirhams held in segregated, regulated accounts. Audited smart contracts and real-time reserve attestations are central to the design. The move deepens traditional banks’ participation in the UAE’s stablecoin ecosystem. According to a press release shared on Wednesday, the forthcoming stablecoin will be fully backed one-to-one by dirhams held in segregated, regulated accounts. The token will be governed by audited smart contracts and supported by real-time reserve attestations, aligning with the UAE’s emphasis on transparency and financial stability in digital asset design. The initiative marks a new phase in RAKBank’s digital assets strategy, building on its 2025 move to allow retail customers to trade cryptocurrencies through a regulated brokerage partner. Raheel Ahmed, group chief executive officer of RAKBank, described the in-principle approval as an “important milestone,” emphasizing that the bank’s approach to digital assets is centered on innovation that is “responsible, regulated, and built on trust.” UAE’s multi-pillar digital asset framework RAKBank’s stablecoin plans sit within the UAE’s broader, multi-layered digital asset regime. Oversight is distributed across several authorities, including the CBUAE, Abu Dhabi Global Market, Dubai’s Virtual Assets Regulatory Authority, and other federal and free-zone regulators. Together, these bodies have been shaping rules for stablecoins, virtual…

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Filed under: News - @ January 7, 2026 10:27 am