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Malaysia’s central bank sets three-year roadmap to pilot asset tokenization

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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.
https://cointelegraph.com/news/malaysia-central-bank-roadmap-pilot-asset-tokenization?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound

Malaysia’s Central Bank Launches Three-Year Plan to Test Asset Tokenization

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**Bank Negara Malaysia Launches Three-Year Programme to Test Real-World Asset Tokenisation**

Bank Negara Malaysia (BNM) has initiated a pioneering three-year programme aimed at exploring real-world asset tokenisation. The newly released roadmap is designed to understand how blockchain-based tokenisation can transform Malaysia’s financial landscape, ranging from Islamic finance to supply chain management. Industry stakeholders are invited to provide feedback on the initiative until March 1, 2026.

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### Malaysia’s 3-Year Plan for Tokenisation

BNM has published a Discussion Paper on Asset Tokenisation to gather insights and feedback from both the financial and technology sectors. The primary goal is to establish a **Digital Asset Innovation Hub** alongside an industry working group, which will collectively explore how tokenisation can be integrated into real-world financial systems.

The roadmap is structured as follows:

– **2026:** Focus on proof-of-concept and pilot testing to evaluate which applications are effective.
– **2027:** Expansion of pilots into larger trials based on initial findings and stakeholder input.
– **Ongoing:** BNM encourages ongoing feedback and suggestions for use cases, with the deadline set for March 1, 2026.

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### Focus Areas and Selection Criteria

The working group will concentrate on several key use case areas, such as:

– **Supply Chain Finance:** Tokenisation can enhance transparency, improve traceability, and accelerate payment processes.
– **Islamic Finance:** Blockchain technology offers opportunities to develop more efficient and transparent Sharia-compliant financial products.

BNM emphasizes that not every idea will qualify. Projects must:

– Demonstrate tangible, real-world benefits.
– Apply blockchain technology only where it is the right fit.
– Be technically feasible within existing infrastructure.

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### Why Malaysia Is Exploring Tokenisation Now

BNM’s motivation for this initiative stems from addressing critical challenges:

– **SME Financing Gap:** Malaysia faces a RM101 billion gap in SME financing. Tokenisation can help by turning invoices into digital tokens, enabling small businesses to access faster and more affordable loans.
– **Islamic Finance Leadership:** Malaysia is a global leader in Islamic finance. The use of tokenised *sukuk* and smart contracts can automate payments, increase liquidity, and expand the RM2.4 trillion Islamic finance market, all while adhering to Shariah principles.
– **Sustainability and ESG:** Tokenised green bonds could link payments directly to verified climate outcomes, minimizing greenwashing and enhancing investor confidence in Malaysia’s expanding Environmental, Social, and Governance (ESG) sector.

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With this structured, pragmatic approach, Bank Negara Malaysia aims to bridge the gap between innovation and practical application, positioning Malaysia as a regional leader in regulated digital finance. Stakeholders interested in contributing insights or potential use cases are encouraged to participate before the March 1, 2026 deadline.

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