Dubai is significantly advancing in the fintech sector, and it has taken another big step in its innovation. Recently, RAKBANK received approval from the CBUAE to launch a dirham-backed stablecoin. This move is a major announcement, as this means digital currency holds the same value and status as the UAE’s national currency or physical cash.
This places RAKBANK among a group of financial institutions in the UAE that are racing to issue regulated digital currencies in the Emirates. This approval is an important step and is being seen as one of the best startup story like journeys within the traditional banking sector, where innovation, regulation, and trust come together. The bank still needs to complete more regulatory and operational checks before its stablecoin can be launched for public use.
Stablecoins Experience Global Growth in Interest
UAE dirham-backed stablecoin approval by CBUAE highlights the continuously growing interest in stablecoin in the Emirates and worldwide. Based on the recent report shared by Moody’s 2026 outlook, the global stablecoin market has crossed $308 billion. This means the annual settlement volumes have reached $9 trillion.
This data shows the strong adoption of stablecoins for payments, liquidity management, and digital asset settlements. The UAE has emerged as a leader in stablecoin regulation within the Middle East, as many dirham-backed tokens have already secured approvals from authorities. Rather than a competition to the future UAE CBDC digital currency, privately issued stablecoins are considered as a support to the financial system and current digital payment options.
RAKBANK Announces Major Milestone Achievement
Speaking about the major achievement of RANBANK, its CEO, Raheel Ahmed, said:
- Securing an in-principle approval from the CBUAE is a major achievement for RAKBANK in its journey to launch digital assets.
- He also said that this approval shows its focus on innovation that is responsible and built on trust.
- The proposed stablecoin will be completely supported 1:1 by UAE dirhams held in separate, regulated accounts.
- Moreover, smart contracts will be independently audited and will provide real-time confirmation of reserves.
- Before the stablecoin is made available to public use, the bank needs to complete more regulatory and operational requirements.
This big announcement comes as RAKBANK celebrates its 50th year in the Emirates banking sector. The bank’s CEO, Mr. Ahmed, said the bank is focused on developing customer-centric solutions that support the country’s vision for a modern and future-ready financial system.
RAKBANK Leading the UAE’s Digital Banking Revolution
RAKBANK has confirmed that more information about the AED stablecoin pilot phase and any future expansion will be shared once it secures all the regulatory approvals. This is a leading bank in the UAE with assets of more than Dh88 billion, and has been steadily expanding its digital capabilities.
Also, last year, the bank achieved a major milestone by becoming the first traditional UAE bank to offer cryptocurrency trading within its mobile app. It has partnered with a regulated and well-known firm, Bitpanda Technology Solutions, for launching this service.
UAE Dirham-Backed Stablecoin: The Future of Money
The UAE is clearly leading digital finance, and Dirham stablecoin approval paves the way for a new financial era. This approval increases the competition in the regional stablecoin market. However, many banks and fintech firms have already secured approvals for their digital currency plans.
Before RAKBANK, Zand, a digital bank in the country, secured full approval for Zand AED in November 2025. Earlier, in late 2024, AE Coin also received approval as a licensed payment token. In April 2025, FAB also announced its plans to launch a dirham-backed stablecoin. The bank has partnered with ADQ and International Holding Company (IHC) for that. Global companies like Circle and Ripple have also secured approvals in Abu Dhabi for their US dollar-backed stablecoins.
UAE’s Growing Role as a Regulated Hub for Digital Assets
CBUAE has set complete rules for stablecoins under its Payment Token Services Regulation. This regulation became effective in July 2024. Under this framework, the dirham-backed stablecoins are under strict control and supervision of the central bank. They are only regulated by the bank. Foreign payment tokens face limits and are mainly used for virtual asset transactions. The Emirati authorities see regulated stablecoins as an important tool to modernize payments and make cross-border transfers faster. Stablecoins now make up around 51 percent of all crypto activity in the country.
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