RAKBank Wins Race: Dirham Stablecoin Gets Nod

RAKBank has obtained an authorization from the Central Bank of the UAE (CBUAE) to issue a stablecoin pegged against the dirham.

RAKBank will enter the stablecoin market of the UAE on Wednesday, having won in-principle approval. The UAE central bank has given the green light to the proposal for a dirham-backed payment token by the bank.  

The consent is a conditional regulatory approval. There are final operational requirements that RAKBank needs to complete before it can become operational. The bank is already in operation under CBUAE supervision and licensing.  

The stablecoin will continue to be fully supported by the dirham in a 1:1 ratio. Reserves will be held in controlled, segregated accounts. The operations of the token will be handled using smart contracts that are based on real-time attestation.  

Conventional banks enter the Digital Tokens Craze.  

The move by RAKBank is an indication of a strategic shift. The bank had previously facilitated trading in retail crypto in 2025, which allowed customers to access digital assets via regulated brokerage partners.  

The approval was a major milestone, according to group CEO Raheel Ahmed, who indicated that RAKBank is committed to responsible innovation. The bank still focuses on regulated, trust-based solutions.  

The stablecoin combines the old banking trust with the blockchain speed. Smart contracts are audited, and the reserve check in real time creates trust in the user.  

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Who Else Races to Dirham Supremacy?  

The UAE has a well-established stablecoin environment, not limited to conventional finance. Telecom giant e& is testing AE Coin to pay bills. The Abu Dhabi approval is received by Circle to operate with USDC.  

Ripple has received regulatory approval on Ripple USD. They both target institutional applications and regional development. Zand Bank introduced Zand AED in late 2025.  

The ecosystem is defined by several regulating organizations. CBUAE regulates payment tokens. Abu Dhabi Global Market and Dubai VARA provide integrative frameworks.  

Ras Al Khaimah is making itself a Web3 hub. The DARe framework of DAOs was proposed by RAK DAO. The Oasis accelerator by Builder supports blockchain startups with 2 million dollars.  

Key questions are not answered. RAKBank has not announced its blockchain infrastructure decisions, and it remains unclear whether interoperability with global stablecoin rails is achieved.  

The greatest challenge is market adoption. Institutions are setting up tokenized finance, and real-world applications will require tangible product integrations.

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