The National Bank of Ras Al Khaimah (Rakbank) is preparing to roll out a dirham-backed stablecoin after receiving in-principle approval from the Central Bank of the UAE.
The proposed launch, subject to the fulfilment of regulatory and operational requirements, is expected to enhance Rakbank’s expanding digital asset capabilities, the ADX-listed lender said.
Stablecoins are digital currencies that derive their value from being linked to a fiat or government-issued currency.
The announcement follows Rakbank’s move last year to enable retail customers to trade cryptocurrencies through a regulated brokerage partner.
The stablecoin will be backed on a one-to-one basis by the UAE dirham, with reserves held in segregation and regulated to ensure full redemption at par value. It will also incorporate audited smart contracts and real-time reserve attestations to strengthen transparency and operational integrity.
Rakbank said further details on the pilot phase and any subsequent expansion would be communicated in due course.
In October, the bank reported an 18 per cent year-on-year increase in net profit to AED706 million in the third quarter of 2025, supported by growth in non-interest income.
Rakbank shares closed at AED8.43, marking a rise of around one-third over the past year.
Related developments include the UAE outpacing the US in crypto regulation, rising apartment prices in Ras Al Khaimah compared with Dubai’s premium market, Rakbank’s plans to issue its first bond to finance social projects, and the Ras Al Khaimah government’s 49.35 per cent ownership stake in the bank.
