UAE stablecoin push accelerates as Network, RAKBANK join in

Dubai: The UAE’s regulated stablecoin ecosystem is gaining momentum after RAKBANK secured in-principle approval from the Central Bank of the UAE to issue an AED-backed stablecoin, while payments firm Network International moved to enable stablecoin payments across merchant platforms through AE Coin.

RAKBANK said the approval allows it to proceed with plans to launch a dirham-backed payment token, subject to meeting remaining regulatory and operational requirements. The initiative marks the latest step in the bank’s expansion into digital asset services.

The proposed stablecoin will be backed one-to-one by UAE dirhams held in segregated, regulated accounts, supporting full redemption at par value. RAKBANK said the token will also feature audited smart contracts and real-time reserve attestations to enhance transparency and operational integrity.

The bank has been building its digital asset capabilities. In 2025, it enabled retail customers to trade cryptocurrencies through a regulated brokerage partner, providing a compliant access point to digital assets.

Raheel Ahmed, group chief executive of RAKBANK, said the approval reflects the bank’s focus on responsible, regulated innovation aligned with the UAE’s digital economy agenda.

In a separate development, Network International said it has become the first payments platform in the UAE to enable regulated stablecoin payments at scale through AE Coin, following a memorandum of understanding with Al Maryah Community Bank.

The partnership will integrate AE Coin into Network’s point-of-sale and e-commerce systems, allowing merchants to accept stablecoin payments across physical and digital channels.

AE Coin is the UAE’s first Central Bank-licensed, fully reserved, AED-denominated stablecoin. MBank said enabling payments through the AEC Wallet will expand secure and compliant digital payment options for consumers and businesses.

Network said the rollout strengthens its digital payments ecosystem and supports the growing demand for alternative payment methods.

Executives from Network, MBank and AED Stablecoin LLC said the initiative demonstrates how regulated stablecoins can be integrated into existing payment infrastructure to support real-world commercial use.

Together, the two announcements underline how UAE banks and payment firms are accelerating efforts to embed regulated stablecoins into mainstream financial services, as the country positions itself as a regional hub for digital assets and tokenised payments.