Rakbank receives approval to launch stablecoin

• Stablecoin backed 1:1 by UAE dirham
• Initial approval given by central bank
• Rakbank profits up 18% in Q3 2025

The National Bank of Ras Al Khaimah, Rakbank, will launch a stablecoin, a dirham-backed payment token, after receiving in-principle approval from the Central Bank of the UAE.

The launch, subject to the completion of regulatory and operational requirements, will support Rakbank’s growing capabilities in digital asset services, the Abu Dhabi Securities Exchange-listed lender said in a statement.

Cryptocurrencies tied to a fiat or government-issued currency are known as stablecoins.

The development comes after Rakbank enabled its retail customers to trade crypto through a regulated brokerage partner last year.

The stablecoin is expected to be backed 1:1 by the UAE dirham, with reserves held in segregation and regulated to support full redemption at par value. It will also feature audited smart contracts with real-time reserve attestations to enhance transparency and operational integrity.

Updates on the pilot phase and potential expansion will be shared in due course, the bank said.

In October Rakbank said net profit increased 18 percent year on year to AED706 million ($192 million) in the third quarter of 2025, supported by a rise in non-interest income.

The bank’s shares closed at AED8.43, up by about a third in the last year.

Further reading:

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• Rakbank plans first bond to fund social projects

The Ras Al Khaimah government owns a 49.35 percent stake in Rakbank.

In July 2024 the central bank updated its cryptocurrency regulations, allowing the issuance of dirham-backed stablecoins but excluding other digital assets, such as bitcoin and dollar-pegged stablecoins, for payments within the country. 

In December the apex bank approved AE Coin, which is pegged to the dirham.