Bank Negara Malaysia (BNM) has announced a three-year initiative aimed at exploring and implementing asset tokenization within the financial sector. The roadmap includes developing proof-of-concept projects and live pilots through the newly established Digital Asset Innovation Hub (DAIH), as revealed on Friday.
A significant aspect of this plan is the formation of an Asset Tokenization Industry Working Group (IWG), designed to unify industry efforts, share insights, and tackle regulatory and legal hurdles. Co-led by BNM and the Securities Commission (SC), the group will initially focus on use cases that exhibit demonstrable economic value.
Focus Areas: Tokenized Assets and Finance
The central bank has clarified that this tokenization process will emphasize real-world assets rather than cryptocurrencies. Some targeted applications include supply chain financing to enhance credit access for SMEs, efficient liquidity management, and Islamic finance to automate Shariah-compliant transactions. Other initiatives under exploration include programmable payments, sustainable finance, and around-the-clock cross-border trade settlements.
BNM intends to assess the potential of MYR-denominated tokenized deposits and stablecoins, striving to maintain monetary integrity while facilitating swift digital transactions. The integration of wholesale central bank digital currency (CBDC) is also on the agenda.
Joining Regional Efforts
Malaysia aspires to align with other regional regulators, such as Singapore’s Monetary Authority and Hong Kong’s HKMA, in pilot projects aimed at modernizing financial infrastructure through asset tokenization. Feedback on the discussion paper is accepted until March 1, 2026.
Streamlining Crypto Listings
In another update, the Securities Commission of Malaysia proposed a framework in July that would enable approved cryptocurrency exchanges to list specific digital assets without needing prior regulatory approval. This proposal stipulates that exchanges must ensure all listed assets are publicly audited and have been traded for a minimum of one year on a compliant platform.
