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Standard Chartered Bank Malaysia and Capital A, the parent company of AirAsia, signed a letter of intent Friday to develop and test a ringgit-backed stablecoin under Malaysia’s central bank regulatory sandbox.
The institutional pilot, which will not serve retail users, aims to support corporate settlements, trade financing and aviation-related payments across Capital A’s business ecosystem.
Industry analysts say the partnership could redefine how enterprises leverage tokenized assets.
“This collaboration marks a significant milestone in Malaysia’s digital finance evolution,” said Sarena Cheah, digital finance analyst at Fintech ASEAN.
A regulated Ringgit-Backed Stablecoin could open new efficiencies in settlements, liquidity and cross-border flows.
Ringgit-Backed Stablecoin testing will be conducted under the oversight of Malaysia’s Digital Asset Innovation Hub, established by Bank Negara Malaysia (BNM) in June to create safe environments for experimentation.
Standard Chartered Malaysia will serve as the token’s issuer, while Capital A and its ecosystem partners—including aviation, logistics and payments subsidiaries—will design and run enterprise-focused use cases.
According to both companies, the Ringgit-Backed Stablecoin pilot will not target retail consumers.
Instead, it will support institutional-grade applications such as corporate settlements, trade financing, treasury operations and aviation ecosystem payments.
This is not about speculative trading, noted Datuk Omar Siddiq, CEO of Standard Chartered Malaysia.
The Ringgit-Backed Stablecoin initiative also comes amid rising activity from Malaysia’s monarchy and senior political leaders.
Just days earlier, Bullish Aim Sdn. Bhd., owned by Johor’s Crown Prince Tunku Ismail Ibni Sultan Ibrahim, announced RMJDT, another Ringgit-Backed Stablecoin issued on Zetrix—Malaysia’s national Layer-1 blockchain.
The token aims to integrate into government-linked digital infrastructure and state-level treasury operations.
This is a bold next step for Malaysia’s blockchain future, the Crown Prince said during the project unveiling.
A reliable Ringgit-Backed Stablecoin can strengthen transparency, accountability and economic interoperability.
BNM is also accelerating its tokenization roadmap. Its three-year plan includes sandbox testing for tokenized bonds, money market instruments, and wholesale digital assets, as well as forming an Asset Tokenization Industry Working Group to harmonize development across financial institutions.
A surge in local crypto trading—RM13.9 billion ($2.9 billion) in 2024—has prompted Malaysia’s Securities Commission (SC) to propose reforms to modernize its Digital Asset Exchange (DAX) framework.
The SC’s consultation paper outlines a faster listing process for approved tokens, though exchanges must meet stricter governance and risk requirements. This emerging regulatory clarity supports institutional pilots like the Ringgit-Backed Stablecoin initiative.
These reforms will enhance investor protection while enabling compliant growth, said Datuk Seri Awang Adek Hussin, Chairman of the Securities Commission.
Malaysia is positioning itself as a serious player in tokenization and digital asset innovation.
Authorities, however, remain firm that cryptocurrencies are not legal tender and continue enforcement actions against unlicensed platforms such as Bybit and Huobi.
The combined moves by Standard Chartered, Capital A, and Johor’s monarchy underscore how the Ringgit-Backed Stablecoin narrative is rapidly becoming central to Malaysia’s digital finance strategy.
If successful, Malaysia could emerge as one of Southeast Asia’s most advanced markets for regulated tokenized currencies—bridging traditional finance, government operations and enterprise blockchain rails.
As Fintech ASEAN’s Cheah puts it: Malaysia is building momentum. A secure, compliant Ringgit-Backed Stablecoincould be the catalyst that unlocks the country’s next stage of digital economic transformation.
