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>>Competition among UAE stablecoins intensifies after RAKBank receives central bank approval

Competition among UAE stablecoins intensifies after RAKBank receives central bank approval

crypthub

1 day ago

RAKBank Stablecoin Approval

RAKBank received in‑principle approval from the UAE Central Bank to issue a dirham‑pegged stablecoin. The token will be fully backed 1:1 by AED reserves held in segregated, regulated accounts. Audited smart contracts and real‑time reserve attestations will ensure transparency and enable redemption at par value. The bank views the decision as a key milestone in its digital‑asset strategy.

Growing Stablecoin Competition

The approval adds RAKBank to a nascent market shaped by the 2024 Payment Token Services Regulation. Competitors include Zand AED, the first multi‑chain dirham‑backed stablecoin, and AE Coin, both already licensed. International firms such as Circle have also secured permissions to operate in the UAE, expanding the ecosystem.

Regulatory Vision and Impact

UAE authorities see regulated stablecoins as tools to modernise payments, improve remittances and boost the digital economy. Ongoing oversight will require regular audits and strict reserve controls. As RAKBank moves toward a full licence, the sector is set to remain competitive while aligning with the Emirates’ broader financial goals.