Standard Chartered Bank Malaysia, alongside Capital A, the parent company of AirAsia, has revealed plans to develop and pilot a ringgit-pegged stablecoin aimed at wholesale transactions.

On Friday, they announced a letter of intent to explore this stablecoin within Malaysia’s Digital Asset Innovation Hub, an initiative unveiled by Bank Negara Malaysia (BNM) earlier this year. This marks Capital A’s first engagement with the regulated digital asset sector.

The undertaking will harness the financial infrastructure and expertise provided by Standard Chartered, as well as the ecosystem of Capital A, to test the stablecoin in a wholesale context rather than for retail purposes.

Standard Chartered Malaysia will act as the stablecoin issuer, while Capital A and its associated firms will focus on the development, testing, and piloting of wholesale use cases.

Image Source: Air Asia

As more nations embrace crypto and stablecoins, Malaysia aims to stay at the forefront. Capital A’s initiative aligns with the country’s broader goals to modernize its payment systems and capital markets through digital assets.

This endeavor appears to enjoy support from Malaysia’s highest authorities, as evidenced by the royal family’s recent stablecoin launch. The Digital Asset Innovation Hub allows fintech and digital asset firms to trial new technologies under BNM’s oversight.

In a related development, BNM announced last month a three-year roadmap aimed at investigating asset tokenization across its financial system, using the regulatory sandbox framework. This includes establishing an Asset Tokenization Industry Working Group to address challenges and promote industry-wide collaboration on related innovations.

Since the beginning of 2025, Malaysia has been reevaluating its digital asset strategies, seeking to modernize its financial landscape.