- Bank Negara Malaysia (BNM) has announced a three-year roadmap to accelerate asset tokenization and blockchain integration.
- This effort includes proof-of-concept projects and industry collaboration through the Asset Tokenization Industry Working Group (IWG).
- Focus areas include tokenized deposits, stablecoins, CBDCs, and use cases such as supply chain finance and Islamic finance automation.
- Malaysia aims to join other regional regulators in piloting a tokenization project to modernize its financial infrastructure.
- The proposal for faster cryptocurrency listings, incorporating security audits and compliance standards, is part of Malaysia’s evolving cryptocurrency regulatory environment.
Malaysia’s central bank, Bank Negara Malaysia (BNM), has announced a strategic initiative to transform the financial landscape through exploring blockchain technology and tokenizing assets. Over the next three years, BNM will conduct proofs of concept (POC) and live pilot projects through the Digital Asset Innovation Hub (DAIH), which was established earlier this year. The move aims to strengthen Malaysia’s capabilities in digital finance, in line with the regional trend towards blockchain-enabled financial services.
A cornerstone of this initiative is the formation of the Asset Tokenization Industry Working Group (IWG), co-led by BNM and the Securities Commission (SC). This group will oversee industry-wide research, facilitate knowledge exchange, and identify regulatory and legal challenges for tokenization projects. Initially, we will focus on real-world use cases that demonstrate tangible economic benefits.
Tokenized assets, stablecoins and CBDCs: a strategic focus
The central bank stressed that its tokenization efforts will focus on real-world assets rather than cryptocurrencies themselves. Key use cases include supply chain finance to enhance access to credit for small and medium-sized enterprises (SMEs), tokenized liquidity management to enable faster payments, and applications in Islamic finance that can automatically facilitate Sharia-compliant transactions. Other areas of interest include programmable payments, green finance initiatives, and seamless cross-border trade payments available 24 hours a day.
BNM also plans to explore the role of MYR-denominated tokenized deposits and stablecoins in maintaining currency stability while improving the efficiency of digital payments. The integration of wholesale central bank digital currencies (CBDC) will be a further line of exploration aimed at strengthening financial infrastructure through secure digital assets.
Through this roadmap, Malaysia hopes to join other Asian financial hubs such as Singapore and Hong Kong in pioneering asset tokenization projects aimed at modernizing financial infrastructure and fostering innovation. The industry is encouraged to submit feedback on the discussion paper until March 1, 2026, demonstrating a transparent and collaborative approach to the development of the cryptocurrency ecosystem.
Streamlining virtual currency listing procedures
In an effort to accelerate the adoption and trading of digital assets, the Securities Commission Malaysia in July proposed a framework that would allow approved exchanges to list certain cryptocurrencies without requiring prior regulatory approval. Conditions include that these assets have undergone a comprehensive security audit and have been actively traded for at least one year on a platform that complies with standards set by the Financial Action Task Force (FATF). This adjustment aims to foster a more dynamic and secure trading environment for crypto investors in Malaysia.