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.
Under the initiative, BNM will launch proof-of-concept (POC) projects and live pilots through its Digital Asset Innovation Hub (DAIH), established earlier this year, the central bank announced on Friday.
A key part of this roadmap is the creation of an Asset Tokenization Industry Working Group (IWG), which will coordinate industry-wide exploration, share knowledge and identify regulatory and legal challenges.
The working group, co-led by BNM and the Securities Commission (SC), will initially focus on foundational use cases that can demonstrate “clear” economic value.
Related: Malaysia launches Digital Asset Hub to test stablecoin, programmable money
Tokenized deposits, stablecoins, CBDC integration
The central bank clarified that tokenization will focus on real-world assets, not cryptocurrencies.
Among the highlighted use cases are supply chain financing to expand SME credit access, tokenized liquidity management for faster settlement and Islamic finance applications that can automate Shariah-compliant transactions. Other areas include programmable payments, green finance and 24/7 cross-border trade settlements.
BNM also plans to study the role of MYR-denominated tokenized deposits and stablecoins, aiming to preserve the “singleness of money” while enabling efficient digital settlement. Wholesale central bank digital currency (CBDC) integration will also be explored.
Per the roadmap, Malaysia also aims to join other Asian regulators like Singapore’s MAS and Hong Kong’s HKMA in piloting asset tokenization to modernize financial infrastructure. Industry feedback on the discussion paper is open until March 1, 2026.
Related: Tokenized money market funds emerge as Wall Street’s answer to stablecoins
Malaysia’s regulator proposes faster crypto listings
In July, Malaysia’s SC proposed a new framework that would allow approved cryptocurrency exchanges to list certain digital assets without needing prior approval from the regulator.
Under the proposal, exchanges would be required to ensure that listed assets have undergone public security audits and have been traded for at least one year on a platform compliant with Financial Action Task Force (FATF) standards.
Magazine: Bitcoin OG Kyle Chassé is one strike away from a YouTube permaban
