RAK Bank Teams Up With Kraken For Virtual Asset Trading In Dirham
Good news for UAE crypto enthusiasts. The nation has taken yet another benchmark stride towards becoming a global virtual asset hub. Walking towards this vision, earlier this year, the UAE government provided Kraken with the first full license to operate a regulated virtual asset exchange platform in the Abu Dhabi Global Market. Now, the country’s most dynamic bank, RAKBANK has come forward to enable Kraken to offer transparent, efficient, dirham-based digital asset trading to the customers.
This move is in line with the bank’s commitment of “Simply Better” banking and innovation. RAKBANK currently offers a wide range of Personal Banking services to the customers. In recent years, it has started to provide lending services to traditional SME, Commercial, and Corporate segment. It also has RAKislamic segments in all its 27 branches to offer Islamic banking solutions.
The RAKBANK’s association with the world’s largest digital asset exchange, Kraken is a promising step towards the future of digital economy in UAE. Kraken is today leading the euro volume liquidity segments. It trades globally in over 150 cryptocurrencies and around 7 flat currencies. It is also the largest and the most trusted virtual asset exchange in the world. It has a consumer base of over 9 million traders.
The coalition between these two powerful organizations will now help UAE residents to trade digital assets trade using their local bank accounts, in their local currency, AED. This implies that now UAE based clients can fund the traders’ crypto accounts by means of local fund transfers from any bank within the country. The transactions will be regulated by the Central Bank of UAE.
At present, the residents of the country have to depend upon foreign correspondents or banks to trade their virtual assets. This amounts to high fees and foreign exchange rates, making the trade extremely heavy on the pocket. It also means that the transactions have a longer lead time since they are subject to overseas-jurisdiction asset governance.
However, the innovative new solution will ensure that UAE residents who trade in virtual assets are able to fund their accounts in a faster and smoother manner with low attached costs. The best part is that they get to enjoy all these benefits while remaining well within the UAE’s jurisdiction.
Talking about the development, Mr. Raheel Ahmed, CEO of RAKBANK commented, “We are proud to be the first UAE bank to enable Kraken, so that it can offer this solution to its UAE-resident crypto investors. This is another step towards our goal of making banking simpler and easier through innovation.”
Mr Ahmed further added that today UAE is emerging as a major crypto hub and a prominent digital assets industry all over the globe. Therefore, this breakthrough development will safeguard the interests of Kraken’s UAE-based investors. “They will be able to transact in virtual assets transparently and efficiently through an ADGM-regulated crypto exchange that has the ability to convert between AED and crypto through UAE Central Bank-regulated banking channels.”Mr. Ahmed is confident that this alliance will help in achieving UAE’s vision of becoming a global hub for virtual assets. It is indubitable that the partnership between Kraken and RAKBANK will ease the trading of various virtual assets for UAE residents while also saving them a significant amount of money.