The National Bank of Ras Al Khaimah (RAKBANK), a government-owned bank in the United Arab Emirates (UAE), has partnered with crypto infrastructure provider Bitpanda Technology Solutions to develop a digital asset management platform for UAE residents. This move underscores RAKBANK’s commitment to embracing digital assets as a key component of future financial management.
Platform Pending Central Bank Approval
While the partnership between RAKBANK and Bitpanda marks a significant step towards broader digital asset adoption in the UAE, the platform’s launch is still contingent on approval from the Central Bank of the United Arab Emirates (CBUAE). Despite this, RAKBANK has expressed a strong belief in the potential of digital assets, with the bank’s Group Chief Customer Officer, Dongjun Choi, describing them as the “future” of financial management.
Choi emphasized the platform’s goal to address a gap in the market by providing a regulated banking option for dealing with digital assets. This partnership allows RAKBANK to offer digital asset services without the need to develop in-house infrastructure, leveraging Bitpanda’s established technology.
Bitpanda’s Role in Crypto Innovation
Bitpanda Technology Solutions CEO, Lukas Enzersdorfer-Konrad, highlighted the company’s long-standing involvement in pioneering crypto innovation within the UAE. By supporting RAKBANK’s initiative, Bitpanda aims to further solidify its position as a key player in the region’s evolving digital asset landscape.
Broader Context of Crypto Adoption in the UAE
The partnership between RAKBANK and Bitpanda is part of a broader trend of increasing crypto adoption in the UAE. In February 2023, Ras Al Khaimah (RAK) announced plans to create a free-trade zone dedicated to digital assets, known as the RAK Digital Assets Oasis (RAK DAO). This initiative aims to attract businesses involved in crypto, Web3, blockchain, and artificial intelligence by offering favorable tax schemes and regulatory frameworks.
Additionally, other recent developments highlight the UAE’s growing acceptance of cryptocurrency. For example, the UAE-based exchange M2 integrated a feature in July 2023 that allows residents to buy and sell Bitcoin and Ether directly using their UAE bank accounts. In another significant move, a Dubai court recognized crypto as a valid form of salary payment in August 2023, signaling increasing acceptance of digital currencies in various sectors.
