In Brief
- RAKBANK secures approval to pilot a fully backed AED stablecoin with real‑time reserves.
- Project aligns with UAE rules allowing dirham‑backed stablecoins for payments use.
- Stablecoin market hits $317.94B, led by USDT dominance at 60.68% and USDC strength.
RAKBANK has received in-principle approval from the Central Bank of the UAE to issue an AED-backed stablecoin. This decision highlights the bank’s digital assets strategy and the UAE’s broader plan to develop blockchain-based payment systems. The approval is subject to the completion of all regulatory and operational requirements.
The stablecoin will be backed 1:1 with UAE dirhams, held in segregated and regulated accounts for full redemption at par value. It will also operate on smart contracts with real-time reserve attestations to ensure transparency and trust. RAKBANK said details on the pilot phase and future expansion will be disclosed after further approvals.
The UAE’s stablecoin market has seen rising activity as local banks and institutions explore digital payment solutions. RAKBANK’s approval follows similar efforts by Zand Bank, FAB, and Al Maryah Community Bank, which launched AE Coin earlier. The Central Bank’s Payment Token Services regulation allows only dirham-backed stablecoins to be used for payments in the Emirates.
Blockchain Integration Advances as Stablecoin Projects Multiply
RAKBANK’s move builds on its earlier digital asset initiatives, including a 2025 partnership with Bitpanda to allow crypto trading for retail users. The bank aims to combine traditional financial confidence with blockchain efficiency through its upcoming stablecoin. It also marks RAKBANK’s 50th anniversary as it focuses on modern, customer-aligned solutions.
The stablecoin will not function as a central bank digital currency but rather as a regulated private token backed by reserves. The regulation requires a published white paper and approval from the Central Bank before any payment token is issued. RAKBANK is expected to establish a separate licensed entity for token issuance to comply with this rule.
Meanwhile, data from January 6, 2026, shows that stablecoins have reached a total market capitalization of $317.94 billion, with USDT accounting for 60.68% of the market. USDT leads with a market value of $187 billion and a daily trading volume of $100.8 billion, followed by USDC with a market cap of $75.7 billion.
Source: XStablecoins currently represent 9.90% of the overall crypto market, highlighting the dominance of large-cap tokens and the competitive landscape that RAKBANK’s planned AED-backed stablecoin will eventually enter.
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Source: https://coincu.com/news/rakbank-gains-cbuae-nod-to-launch/
