Standard Chartered Malaysia and Capital A Explore Ringgit-Backed Stablecoin for Institutional Use
Standard Chartered Malaysia and Capital A, the parent company of AirAsia, have signed a letter of intent to explore the development of a ringgit-backed stablecoin aimed at institutional and wholesale use. This pilot initiative operates under Bank Negara Malaysia’s Digital Asset Innovation Hub, a regulatory framework designed to test tokenization.
Under the plan, Standard Chartered Malaysia will issue the ringgit-backed token, while Capital A and its ecosystem partners will focus on designing and testing use cases targeted specifically at wholesale markets; retail usage is not included in this project.
This collaboration aligns with Malaysia's broader efforts to modernize payments, settlement systems, and capital markets through digital assets and tokenization. Notably, this marks Capital A's first involvement in regulated digital asset development.
Bank Negara Malaysia, along with other regulatory bodies, has accelerated work on asset tokenization via a three-year roadmap and the establishment of an Asset Tokenization Industry Working Group that coordinates efforts among banks, fintech firms, and regulators.
Separately, Malaysia’s Crown Prince has launched a state-backed ringgit stablecoin initiative called RMJDT on the Zetrix platform, demonstrating the active stance of policymakers on stablecoin development.
Additionally, the Securities Commission has proposed a significant overhaul of regulations governing crypto exchanges aimed at accelerating listings and strengthening governance. The proposal also clarifies that cryptocurrencies are not legal tender in Malaysia and includes measures against unlicensed exchanges.
