UAE Central Bank grants in principle approval to RAKBANK for AED Stablecoin issuance

UAE RAKBANK has received in-principle approval from the Central Bank of the UAE (CBUAE) to issue an AED-backed stablecoin, subject to the completion of regulatory and operational requirements. Further updates on the pilot phase and potential expansion will be shared in due course, subject to regulatory approvals.

According to the press release this is part of RAKBANK’s digital assets journey and their commitment to be aligned with UAE’s digital economy framework.

This is not the first time RAKBANK has dabbled in the crypto space, in 2025 it announced that it would offer its retail customers the ability to trade crypto using Dubai regulated Bitpanda as their crypto exchange.

As per the announcement, the AED stablecoin will bring together the confidence of traditional banking and the efficiency of blockchain. It will feature, 1:1 backing AED, regulated to support full redemption at par value. It will include audited smart contracts with real time reserve attestations that support transparency and operational integrity.

Raheel Ahmed, Group CEO of RAKBANK, noted that this in principle approval reflects their focus on responsible innovation, regulated and built on trust. He explains, ” As we mark our 50th anniversary, we remain committed to developing solutions that are designed around our customers’ needs and aligned with the UAE’s vision for a future-ready financial system. It is another step in delivering banking that is digital with a human touch.”

FAB Bank and Crypto.com have also announced AED stablecoin projects

In October, Dubai’s Department of Finance (DoF), in collaboration with Dubai Land Department (DLD) and with the support of Dubai Pay platform from Digital Dubai Authority, as well as Foris Dax, represented by Crypto.com and Emirates NBD, successfully trialed the payment settlement of cryptocurrencies to AED Dirhams and AED stablecoin for Dubai government services fees.

The DLD explained that the transaction tested successfully was for the “Issuance of a Property Map” service, as part of testing new technologies and systems within a secure environment before the official launch in the future.

Foris DAX Middle East, trading as Crypto.com, received In-Principle Approval (IPA) from the Central Bank of the UAE (CBUAE) for a Stored Value Facilities (SVF) license which would allow it to provide digital payment services for Dubai government fees in UAE Dirham or Dirham pegged stablecoins.

Moreover Abu Dhabi FAB Bank announced that it was working on an AED stablecoin to be built on the ADI Chain. ADI Blockchain Foundation will be developing an AED stablecoin to be issued by First Abu Dhabi Bank, with the support of ADQ a sovereign investor and IHC an investor as well.

MBANK was the first to issue a regulated AED Stablecoin in UAE

However neither RAKBANK nor FAB will be the first banks to issue a regulated stablecoin. Already Al Maryah Community Bank, was the first to do so with AE Coin. Already AE Coin has been incorporated into not only governmental entities but also private sector companies within the UAE.

The race towards the issuance and utilization of AED stablecoins has progressed in the UAE, with Tether one of the first to announce it would launch an AED stablecoin still clearly out of the picture.