Bank Negara Malaysia announced today that it will launch three pilot initiatives involving ringgit stablecoins and tokenized deposits in 2026.
According to a report by the Central Bank of Malaysia (BNM) today, these three initiatives will start the use of regulated blockchain technology to develop both digital asset and digital payment methods.
First Pilot Conducted By Institutional Partners
The BNM also confirmed that all three initiatives will fall under the BNM’s Digital Asset Innovation Hub (DAIH). DAIH is a regulatory sandbox used to test innovative financial technologies. The BNM stated that the three initiatives will focus on wholesale payment use cases such as domestic settlement and cross-border transactions.
The first pilot was identified as a Business-to-Business Ringgit Stablecoin Settlement System. This is a partnership between Capital A (the parent company of Air Asia) and Standard Chartered Bank Malaysia through a joint venture.
Two other pilots will be developed separately by two of the largest banks in Malaysia (Maybank and CIMB). Both pilots will develop and test tokenized deposits, which are digital representations of bank-held money.
It uses blockchain technology to provide quicker payment settlements while still maintaining all of the regulatory protections afforded to traditional banking methods.
The central bank stated that all three pilots have been created to evaluate and understand the operational efficiencies and risk management strategies. They would also help the bank assess regulatory implications associated with developing and implementing stablecoins and tokenized deposits.
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Clear Regulatory Guidance Expected by the End of 2026
The BNM mentioned that they would develop a National Policy for Malaysia on Digital Assets based on data collected from these pilots. Additionally, it noted that by the end of 2026, they anticipate releasing clearly-defined regulations and guidance related to the oversight of ringgit stablecoins and tokenized deposits.
“The evaluation of the impact of these pilots will help us determine the impact of digital assets on monetary and financial stability,” BNM said. In addition, the central bank indicated that the outcomes of the pilots may also contribute to the ongoing research by BNM.
The research is regarding Wholesale Central Bank Digital Currencies (WCBDCs). This supports the long-term goal of the central bank of Malaysia to create an interoperable digital payment method.
Part of a Wider Stablecoin Trend in Asia
Malaysia’s efforts are part of an expanding trend of other Asian countries utilizing blockchain technology to evolve their financial infrastructures. As an example, Hong Kong is actively pursuing a formal stablecoin licensing framework and conducting trials on tokenized deposits.
Singapore has established a regulatory structure and conducted trial evaluations of multiple use cases for digital assets under Project Guardian. Both Hong Kong and Singapore are being followed by Japan, which has joined this trend as well.
It has created a Yen-backed stablecoin and completed corporate payment trials by several major banks in 2025. Development of stablecoins and tokenized deposits in Malaysia represents a gradual and cautiously innovative approach to developing blockchain-based payment systems. This focuses on institutional use rather than personal use.
Why This Matters
The successful completion of the pilots will mark a significant step forward in implementing Malaysia’s Digital Finance Roadmap.
The pilots will provide the foundation for potentially facilitating faster payments, lowering transaction costs, and improving cross-border trades. Additionally, the pilot initiatives will serve as an example of how secure and compliant blockchain-based money can operate as part of Malaysia’s regulated banking System.
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