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The National Bank of Ras Al Khaimah (RAKBANK) announced today that it has received initial approval from the Central Bank of the UAE (CBUAE) to issue a UAE dirham-backed digital payment token (stablecoin), subject to the completion of all regulatory and operational requirements.

The approval marks a significant milestone in RAKBANK’s digital assets journey and reflects the bank’s commitment to delivering regulated, secure, and transparent financial solutions aligned with the UAE’s rapidly evolving digital economy framework.

This development builds on the bank’s expanding digital asset capabilities. In 2025, RAKBANK enabled retail customers to trade cryptocurrencies through a licensed brokerage partner, providing a compliant and secure pathway for accessing digital assets.

The planned stablecoin is designed to combine the trust of traditional banking with the efficiency of blockchain technology.

The stablecoin is expected to feature:

• Full 1:1 backing with the UAE dirham, held in segregated and regulated accounts to ensure full redemption at par value.

• Audited smart contracts with real-time proof of reserves, enhancing transparency and operational integrity.

Commenting on the announcement, Raheel Ahmed, Chief Executive Officer of RAKBANK, said:
“Receiving initial approval from the Central Bank of the UAE is a key milestone in our digital assets journey. It underscores our focus on responsible innovation built on regulation and trust. As we celebrate 50 years of RAKBANK, we remain committed to delivering solutions that meet our customers’ evolving needs and align with the UAE’s vision for a future-ready financial system. This initiative reflects our approach to digital banking with a human touch.”

Founded in 1976, RAKBANK is one of the UAE’s oldest and most dynamic banks, offering a comprehensive range of retail, business, and corporate banking services across the country. The bank is headquartered in Ras Al Khaimah, with its main office located on Sheikh Mohammed bin Zayed Road, and is majority-owned by the Government of Ras Al Khaimah. Its shares are listed on the Abu Dhabi Securities Exchange (ADX).