Bank Negara Malaysia (BNM), the country’s central bank, has unveiled a comprehensive three-year roadmap to explore and test asset tokenization across the financial sector. This initiative aims to modernize Malaysia’s financial infrastructure by leveraging the benefits of digital assets.
As part of the plan, BNM will launch several proof-of-concept (POC) projects and live pilots through its Digital Asset Innovation Hub (DAIH), which was established earlier this year. The central bank announced these developments on Friday, highlighting its commitment to fostering innovation in the digital asset ecosystem.
### Asset Tokenization Industry Working Group (IWG)
A key component of the roadmap is the formation of an Asset Tokenization Industry Working Group (IWG). This group will play a crucial role in coordinating industry-wide exploration, facilitating knowledge sharing, and identifying regulatory and legal challenges. The IWG will be co-led by Bank Negara Malaysia and the Securities Commission (SC), focusing initially on foundational use cases that demonstrate clear economic value.
### Focus on Real-World Assets, Not Cryptocurrencies
BNM clarified that the tokenization efforts will concentrate on real-world assets rather than cryptocurrencies. Highlighted use cases include:
– Supply chain financing to expand SME credit access
– Tokenized liquidity management aimed at faster settlement
– Islamic finance applications to automate Shariah-compliant transactions
– Programmable payments
– Green finance initiatives
– 24/7 cross-border trade settlements
### Exploring Tokenized Deposits and Stablecoins
The central bank also plans to study the role of MYR-denominated tokenized deposits and stablecoins. The goal is to preserve the “singleness of money” while enabling efficient digital settlements. Integration of wholesale central bank digital currency (CBDC) will also be explored to enhance the overall financial ecosystem.
### Regional Collaboration and Industry Feedback
Malaysia aims to join other leading Asian regulators, such as Singapore’s Monetary Authority of Singapore (MAS) and Hong Kong’s Hong Kong Monetary Authority (HKMA), in piloting asset tokenization as part of its efforts to modernize financial infrastructure.
The central bank has opened industry feedback on the discussion paper until March 1, 2026, inviting stakeholders to contribute to shaping the future of digital asset regulation in Malaysia.
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### Malaysia’s Regulator Proposes Faster Crypto Listings
In related developments, Malaysia’s Securities Commission (SC) proposed a new framework in July to streamline cryptocurrency listings. Under this proposal, approved crypto exchanges would be allowed to list specific digital assets without prior approval from the regulator.
However, exchanges must ensure that listed assets have undergone public security audits and have been traded for at least one year on platforms compliant with Financial Action Task Force (FATF) standards. This move aims to promote greater agility in the digital asset market while maintaining regulatory oversight.
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For more updates on Malaysia’s digital asset landscape and ongoing regulatory changes, stay tuned.
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