UAE’s dirham stablecoin race widens as RAKBank nets in-principle approval

RAKBank's in-principle nod from the Central Bank of the UAE to launch a dirham-backed stablecoin adds a homegrown bank to the UAE’s stablecoin race.

RAKBank is preparing to join the United Arab Emirates’ (UAE’s) fast-evolving stablecoin ecosystem after receiving in-principle approval on Wednesday from the Central Bank of the United Arab Emirates (CBUAE) to issue a UAE dirham-backed payment token. 

In-principle approval means the CBUAE has agreed to RAKBank’s stablecoin plans subject to final regulatory and operational conditions, and the bank, already licensed and supervised by the CBUAE, must satisfy those before any live issuance.

In a Wednesday press release shared with Cointelegraph, the bank said the forthcoming stablecoin will be fully backed 1:1 by dirhams held in segregated, regulated accounts and governed by audited smart contracts with real-time reserve attestations.

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