The Receipt
The National Bank of Ras Al Khaimah (RAKBank) has secured in-principle approval from the Central Bank of the UAE (CBUAE) to issue a dirham-pegged stablecoin. This regulatory nod allows the bank to move forward with issuing a payment token fully backed by the UAE Dirham (AED), pending final operational checks.
The approval falls under the CBUAE’s Payment Token Services Regulation (PTSR), a framework designed to bring bank-grade security to digital assets.
The Mechanism
RAKBank confirmed the token will maintain a strict 1:1 peg to the AED. Unlike algorithmic alternatives or yield-bearing unregulated tokens, the bank’s model relies on two core pillars of trust:
- Segregated Reserves: Fiat backing will be held in regulated accounts, ensuring 100% redemption capability at par value.
- On-Chain Transparency: The system will utilize audited smart contracts and feature real-time reserve attestations to prove solvency instantly.
“Receiving in-principle approval from the Central Bank of the UAE is an important milestone… It reflects our focus on innovation that is responsible, regulated and built on trust.”, Raheel Ahmed, Group CEO of RAKBank.
Institutional Context
The entry of legacy banks into the stablecoin sector signals a shift in the UAE’s digital asset strategy. RAKBank is not alone; it follows MBANK, which became the first to issue a regulated AED stablecoin. First Abu Dhabi Bank (FAB) is also developing a project on the ADI Chain. This trend forces crypto-native issuers to compete directly with state-backed financial institutions that already possess the banking rails necessary for seamless fiat on-ramps.
This move builds on RAKBank’s 2025 partnership with Bitpanda, where it became the first conventional UAE bank to offer retail crypto trading directly through its app. The infrastructure is now moving from mere brokerage to active issuance.
