UAE-based RAKBANK has launched a crypto brokerage service via its mobile app for retail users. This new feat shows that not only are conventional banks in the US now offering crypto services to their clients, but banks in the UAE are also tilting toward crypto. According to reports, the service will first be based on invite, with RAKBANK planning to roll out to more users in the future.
RAKBANK plans to use the infrastructure of BitPanda, a UAE-regulated crypto exchange, to facilitate the process. BitPanda will be integrated into the bank’s mobile banking application, allowing users to buy, sell, and swap digital assets. This means that BitPanda owns the platform, while RAKBANK is charged with providing access using its mobile app and accounts.
RAKBANK to execute crypto transactions in AED
According to the press release, all crypto transactions will be carried out using AED currency, so there are no foreign currency transfers or losses. The bank maintains that its customers will no longer need to move money in and out of crypto exchanges because all transactions will be carried out from the comfort of their savings or current accounts.
Group CEO of RAKBANK, Raheel Ahmed, noted that the bank will be the first conventional bank in the UAE to provide simple, secure, and regulated access to world-class digital assets platforms. “We believe our customers deserve a more efficient and seamless crypto buying, selling, and swapping journey that is fully regulated and entirely in AED,” he said.
Deputy CEO of BitPanda, Lukas Enzersdorfer-Konrad, described the partnership as a big movement in the digital assets industry in the MENA region. “We’re showing how crypto can be offered in a safe, regulated, and simple way, directly from a major conventional bank that customers already trust,” he said. “This is exactly how the future of finance should look: simple, compliant, and built to meet real user needs.”
In the UAE, several banks have started to enter the crypto space, including financial institutions like Mbank, Zand Bank, Liv Bank by Emirates NBD, and FAB Bank. These banks integrate their products with crypto exchanges, but not in the same way that RAKBANK has done. It’s a new movement whereby banks are entering the crypto space with arms wide open, especially after the Genesis Act was passed in the United States.
Last week, PNC Bank announced that it had entered into a partnership with Coinbase to expand access to trusted, secure, and innovative digital asset solutions, offering a crypto-as-a-service platform. The partnership will look to develop an initial offering that will allow its customers to buy, hold, and sell several digital assets.
