Bank Negara Malaysia (BNM), the country’s central bank, has unveiled a three-year roadmap to explore and test asset tokenization across the financial sector. The initiative aims to drive innovation and modernization through blockchain-based digital assets, enhancing efficiency and accessibility in financial services.
As part of the roadmap, BNM will launch proof-of-concept (POC) projects and live pilots via its Digital Asset Innovation Hub (DAIH), established earlier this year. The central bank announced this development on Friday, emphasizing its commitment to advancing digital asset technologies.
A key component of the roadmap is the creation of an Asset Tokenization Industry Working Group (IWG). This group will coordinate industry-wide exploration, facilitate knowledge sharing, and identify regulatory and legal challenges surrounding asset tokenization. Co-led by BNM and the Securities Commission (SC), the IWG will initially focus on foundational use cases that demonstrate clear economic value.
### Focus on Real-World Asset Tokenization
BNM clarified that the tokenization efforts will concentrate on real-world assets rather than cryptocurrencies. Highlighted use cases include:
– **Supply chain financing** to expand credit access for small and medium enterprises (SMEs)
– **Tokenized liquidity management** for faster settlement processes
– **Islamic finance applications** to automate Shariah-compliant transactions
Additional areas of interest encompass programmable payments, green finance initiatives, and 24/7 cross-border trade settlements.
### Exploring MYR-Denominated Tokenized Deposits and Stablecoins
The central bank also plans to study the role of Malaysian Ringgit (MYR)-denominated tokenized deposits and stablecoins. This exploration aims to preserve the “singleness of money” while enabling more efficient digital settlement mechanisms. Furthermore, the integration of wholesale central bank digital currency (CBDC) will be examined as part of the broader digital asset strategy.
### Regional Collaboration and Industry Feedback
Malaysia seeks to align with other leading Asian regulators such as Singapore’s Monetary Authority of Singapore (MAS) and Hong Kong’s Hong Kong Monetary Authority (HKMA) by piloting asset tokenization projects to modernize financial infrastructure across the region.
Industry stakeholders are invited to provide feedback on the discussion paper until March 1, 2026, enabling collaborative development of the regulatory and operational framework.
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### Malaysia’s Regulator Proposes Faster Crypto Listings
In a related development, Malaysia’s Securities Commission (SC) proposed a new framework in July aimed at accelerating cryptocurrency listings on approved exchanges. Under the proposal, exchanges would be permitted to list certain digital assets without requiring prior approval from the regulator.
However, listed assets must meet specific conditions, including undergoing public security audits and having been traded for at least one year on platforms compliant with Financial Action Task Force (FATF) standards. This move seeks to balance market innovation with investor protection and regulatory oversight.
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**Related:**
– Malaysia launches Digital Asset Hub to test stablecoin and programmable money
– Tokenized money market funds emerge as Wall Street’s answer to stablecoins
Bank Negara Malaysia’s roadmap signals a significant step toward embracing digital innovation in the financial sector, positioning Malaysia as a key player in the evolving landscape of tokenized assets.
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