The National Bank of Ras Al Khaimah (RAKBANK), a government-owned financial institution in the UAE, has partnered with Bitpanda Technology Solutions to develop a digital asset management platform for UAE residents.
The new service will offer RakBank customers in the UAE access to a wide range of digital asset use cases, the firm said in a recent press release. However, the project remains subject to approval by the Central Bank of the United Arab Emirates (CBUAE).
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RAKBANK Expresses Optimism About Future Of Crypto
In the announcement, RAKBANK described digital assets as a key component of the financial future. “We believe digital assets represent one of the future ways for customers to manage their finances more efficiently and securely,” Dongjun Choi, RAKBANK’s Group Chief Customer Officer, said.
Choi also noted that the initiative seeks to address a market gap by providing a regulated banking platform for digital assets, thereby offering customers expanded opportunities in this emerging sector. The partnership with Bitpanda allows RAKBANK to leverage existing crypto infrastructure rather than developing its own.
Bitpanda Technology Solutions CEO Lukas Enzersdorfer-Konrad expressed the company’s support for RAKBANK’s innovative efforts. “Together, we will transform crypto access for millions in the UAE and lay the groundwork for future innovation,” he added.
RAKBANK is teaming up with @Bitpanda_global Technology Solutions – a leading digital assets technology provider – to offer UAE residents the opportunity to pursue various digital assets use cases in a secure and efficient way.
When fully launched, RAKBANK customers will be… pic.twitter.com/DJkxgIM1id
— RAKBANK (@RAKBANKlive) August 19, 2024
The partnership follows other major developments in the region’s digital asset landscape. In February 2023, Ras Al Khaimah (RAK) announced the creation of a free-trade zone dedicated to digital assets, offering favorable tax and regulatory conditions for businesses.
Later, in October 2023, the RAK Digital Assets Oasis (RAK DAO) was inaugurated, further solidifying the UAE’s focus on crypto, Web3, blockchain, and artificial intelligence.
The UAE’s growing acceptance of cryptocurrency is also reflected in recent developments such as the integration of crypto transactions with UAE bank accounts by local exchange M2, and a Dubai court’s recognition of crypto as a valid form of salary payment.
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Abu Dhabi Becomes A Crypto Hub
Abu Dhabi has been actively attracting crypto service providers and Web3 companies, establishing itself as a cryptocurrency hub.
In May 2024, crypto options trading platform QCP Capital received in-principle approval for regulated digital asset activities from ADGM. QCP is now the first Singapore-based crypto market maker and broker to receive a preliminary license in the region.
Additionally, popular firm Chainalysis recently established regional headquarters in Dubai. The company is actively engaging with local government stakeholders to provide advice on regulatory development in the crypto industry.
Earlier this year, Swiss crypto asset manager, Digital Asset Solutions (DAS), announced its expansion into the UAE with the appointment of Csaba Dekany, a Swiss financial professional, as a strategic partner.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
