The National Bank of Ras Al Khaimah (RAKBANK), a government-owned bank in the United Arab Emirates (UAE), partnered with crypto infrastructure provider Bitpanda Technology Solutions to create a digital asset management platform for UAE residents.
Announcement and Partnership Goals
In an announcement sent to Cointelegraph, RAKBANK expressed its positive stance on digital assets, describing it as the “future.” RAKBANK’s group chief customer officer Dongjun Choi said, “We believe digital assets represent one of the future ways for customers to manage their finances more efficiently and securely.” However, the platform is still subject to the approval of the Central Bank of the United Arab Emirates (CBUAE).
Filling a Market “Gap”
Choi also said the partnership aims to “fill the gap in the market.” The executive believes there’s a need for a regulated banking platform dealing with digital assets and that they aim to provide customers with broader digital asset opportunities. With the partnership, the bank will not need to develop an in-house infrastructure for digital assets. Bitpanda Technology Solutions CEO Lukas Enzersdorfer-Konrad said they want to support RAKBANK’s ambitions as they have a long history of pioneering crypto innovation in the UAE.
Continuing Crypto Adoption in the UAE
In February 2023, Ras Al Khaimah (RAK) announced its plans to create a dedicated free-trade zone for digital assets in the country. In October 2023, RAK ruler Sheikh Saud bin Saqr Al Qasimi inaugurated the launch of the RAK Digital Assets Oasis (RAK DAO), the UAE’s economic free zone focusing on crypto, Web3, blockchain and artificial intelligence. Also, on July 31, UAE-based exchange M2 announced an integration allowing the country’s residents to buy and sell Bitcoin (BTC) and Ether (ETH) directly with their UAE bank accounts. Meanwhile, a Dubai court recently recognized crypto as a valid form of salary payment.
The partnership between RAKBANK and Bitpanda Technology Solutions is a significant step towards increasing the accessibility of digital assets and integrating them into the financial system of the UAE. This collaboration is gradually changing the perception and use of digital assets in the region.
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