RAKBank Secures CBUAE In‑Principle Approval to Issue Dirham‑Backed Stablecoin
RAKBank has received conditional in‑principle approval from the Central Bank of the UAE (CBUAE) to issue a stablecoin pegged 1:1 to the UAE dirham. The approval allows the bank to proceed once it completes remaining operational and regulatory requirements. The stablecoin will be fully backed by dirham reserves held in segregated, regulated accounts with regular audits and real‑time attestations; token operations will use audited smart contracts. Group CEO Raheel Ahmed described the nod as a milestone for responsible, regulated innovation. The development adds competition to the UAE’s regulated stablecoin space, which already includes Zand Bank’s Zand AED, e&’s AE Coin pilots, and international entrants like USDC (Circle) and projects such as Ripple‑related USD initiatives supported under Abu Dhabi and Dubai licensing frameworks (CBUAE, ADGM, Dubai VARA). Key open questions for traders include which blockchain infrastructure RAKBank will use, whether the token will interoperate with global stablecoin rails, and plans for institutional integrations and liquidity. Short term, conditional approval may increase market attention on dirham‑pegged instruments and local stablecoin yields; long term, successful issuance could boost on‑chain dirham payment rails and local crypto liquidity while intensifying competition among regulated UAE stablecoins.
Neutral
The news is neutral for price action of a dirham‑pegged stablecoin because the approval is in‑principle and conditional rather than a launch. Conditional regulatory approval reduces issuance risk and supports credibility — a bullish factor for eventual demand — but it does not immediately change circulating supply or market liquidity. Short term: expect modest speculative interest and increased attention on dirham stablecoin yields and listings, but no large price moves because stablecoins aim to maintain peg rather than appreciate. Long term: full issuance and adoption (interoperability with global rails, exchange listings, institutional integrations) could be bullish for on‑chain dirham utility and local crypto liquidity; conversely, intensified competition among UAE‑licensed stablecoins could pressure margins and flows, tempering upside. Traders should watch operational milestones (reserve attestations, smart contract audits, chosen blockchain rails) and onboarding announcements as catalysts that could shift market sentiment.