RAKBANK has received in-principle approval from the Central Bank of the UAE to issue an AED backed payment token, or dirham stablecoin. The approval is subject to the bank completing regulatory and operational requirements.
The bank becomes the first conventional UAE bank to secure such approval, although ZAND, a digital bank, received full approval for its ZAND AED stablecoin in November 2025.
Both banks will face significant competition in the dirham stablecoin market. In April 2025, First Abu Dhabi Bank (FAB), the UAE’s largest lender, announced plans to launch a stablecoin in partnership with investment firm IHC and sovereign investor ADQ. However, no regulatory approval has been announced for that initiative. The FAB project benefits from powerful backing, with all three entities chaired by Sheikh Tahnoon bin Zayed al-Nahyan, brother of the UAE President and the country’s National Security Advisor.
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