Malaysia’s central bank, Bank Negara Malaysia (BNM), announced that its Digital Asset Innovation Hub is currently running three regulatory sandbox programs focused on studying stablecoins and tokenized bank deposits. The initiatives concentrate on exploring ringgit-denominated stablecoins for cross-border settlement and advancing the tokenization of real-world assets, according to the official statement.

The pilot also includes experimentation with tokenized bank deposits, with the research potentially contributing to the future development of a wholesale central bank digital currency, an onchain form of fiat money issued and managed directly by a central bank. Participants in the trials include Standard Chartered Bank, CIMB Group, Maybank and investment firm Capital A.

BNM also noted that it will evaluate “Shariah-related considerations,” referring to compliance with Islamic legal and financial principles. According to the central bank, the programs will “inform our policy direction in these specified areas,” underscoring the broader global momentum toward tokenizing assets, including sovereign currencies, for the digital economy.

Building a broader digital asset framework

The announcement builds on a longer-term strategy unveiled in November 2025, when authorities in Kuala Lumpur introduced a three-year roadmap to expand experimentation with asset tokenization across multiple real-world sectors. Identified use cases include supply chain systems, Shariah-compliant financial instruments, improved credit access, programmable finance and continuous cross-border settlement, as outlined in a BNM discussion paper.

In December, Ismail Ibrahim, the eldest son of Malaysia’s king, introduced a ringgit-pegged stablecoin under the ticker RMJDT. The token was issued by telecom firm Bullish Aim and remains in the regulatory sandbox phase, not yet available for public trading. During the same period, Standard Chartered Bank and Capital A revealed plans to jointly explore another ringgit-based stablecoin designed for wholesale settlement.

Focus on institutional digital money

Wholesale stablecoins and central bank digital currencies are designed primarily for institutional settlement between authorized entities such as financial institutions, central banks and governments, rather than for everyday retail transactions. The ongoing pilots reflect Malaysia’s measured approach to digital finance, combining technological experimentation with regulatory oversight and alignment with broader financial policy objectives.

Sources:

https://www.bnm.gov.my/documents/20124/938039/Discussion_Paper_on_Asset_Tokenisation.pdf

https://cointelegraph.com/news/malaysia-central-bank-stablecoin-tokenize-sandbox

https://www.bnm.gov.my/-/daih-upd