RAKBank Receives Approval to Issue UAE Dirham-Backed Stablecoin, Advancing Digital Asset Strategy
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 07 2026- Regulatory Approval: RAKBank received in-principle approval from the Central Bank of the UAE on January 7 to issue a UAE dirham-backed payment token, marking a significant milestone in its digital asset strategy and expected to enhance the bank's competitiveness in the digital economy.
- Stablecoin Structure: The forthcoming stablecoin will be fully backed 1:1 by dirhams held in segregated, regulated accounts and governed by audited smart contracts with real-time reserve attestations, which will bolster user trust in its security.
- Market Positioning: RAKBank's stablecoin initiative aligns with the UAE's multi-pillar digital assets framework, aiming to modernize domestic payments, support digital economy initiatives, and improve the efficiency of cross-border flows in a remittance-heavy market.
- Future Challenges: Despite regulators and institutions positioning for a tokenized future, market adoption remains an open question, as RAKBank will need to drive corporate and consumer usage of dirham stablecoins in everyday payment workflows through concrete product integrations and pricing incentives.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
