Malaysia Pilots Stablecoin and Tokenization Sandbox
Malaysia’s central bank is testing ringgit stablecoins, tokenized deposits, and RWAs to shape future digital finance policy.
Malaysia is stepping deeper into the digital asset space, with its central bank launching new sandbox programs to explore stablecoins, tokenized bank deposits, and real-world asset (RWA) tokenization as part of a broader push toward modern financial infrastructure.
On Feb. 11, Bank Negara Malaysia (BNM) announced that its Digital Asset Innovation Hub (DAIH) is piloting three regulatory sandbox initiatives aimed at evaluating how tokenized financial instruments could function within the country’s monetary system. The experiments will examine both technological feasibility and potential policy implications, including their relevance to a future wholesale central bank digital currency (CBDC).
Focus on Stablecoins and Tokenized Deposits
The sandbox programs center on ringgit-pegged stablecoins for cross-border settlement and the development of tokenized real-world assets, alongside trials of tokenized bank deposits.
According to BNM, the research is designed to explore how digital assets might integrate into Malaysia’s financial ecosystem while maintaining stability and regulatory oversight.
“The pilot programs will allow BNM to assess the implications to monetary and financial stability and inform our policy direction in these specified areas,” the central bank said in its announcement.
The initiatives involve major institutional partners, including:
- Standard Chartered Bank
- CIMB Group Holdings
- Maybank
- Capital A, an investment holding company
The collaboration signals a strong institutional approach, with the sandbox focused on wholesale financial applications rather than retail cryptocurrency use.
BNM also confirmed it will evaluate Shariah-related considerations, reflecting Malaysia’s commitment to ensuring financial innovations align with Islamic legal and ethical frameworks.
Potential Path Toward a Wholesale CBDC
The central bank noted that insights from the sandbox could support the development of a wholesale CBDC — a digital form of fiat currency issued and managed by a central bank and intended for institutional settlements between authorized entities such as banks and governments.
Unlike retail CBDCs, wholesale versions are typically designed for interbank payments, cross-border transactions, and financial infrastructure upgrades, not consumer use.
Three-Year Roadmap for Tokenization
The sandbox programs align with a broader national strategy. In November 2025, Malaysian policymakers released a three-year roadmap to test asset tokenization across several sectors.
Planned real-world applications include:
- Supply chain management
- Shariah-compliant financial products
- Access to credit
- Programmable finance
- 24/7 cross-border settlement
The roadmap reflects growing global momentum toward tokenization, where traditional financial assets and processes are represented on blockchain networks to enhance efficiency and transparency.
Private Sector Activity Gains Momentum
Malaysia’s digital asset experimentation is also expanding beyond government-led initiatives.
In December 2025, Ismail Ibrahim, son of Malaysia’s current monarch, launched a ringgit-pegged stablecoin under the ticker RMJDT. The token was issued by telecom firm Bullish Aim and remains in a regulatory sandbox phase, with public trading not yet enabled.
The stablecoin is designed to run on Zetrix, a layer-1 blockchain built to connect governments, businesses, and individuals to the Web3 ecosystem, with a particular emphasis on cross-border integration and links to China.
Bullish Aim also announced plans to establish a digital asset treasury (DAT) with an initial allocation of 500 million ringgit ($121.5 million) in Zetrix (ZETRIX) tokens.
That same month, Standard Chartered Bank and Capital A revealed separate plans to explore a ringgit-pegged wholesale stablecoin for institutional settlement — reinforcing a broader trend toward blockchain-based financial infrastructure.
Wholesale Digital Assets vs Retail Crypto
Malaysia’s initiatives emphasize institutional use cases, such as cross-border settlements and interbank transfers, rather than retail crypto trading.
Wholesale stablecoins and CBDCs are typically designed for:
- Settlement between financial institutions
- Government and central bank transactions
- Cross-border payment corridors
- High-value financial infrastructure
This approach mirrors global experimentation, where central banks are prioritizing efficiency and financial stability over consumer-facing digital currencies.
Global Context: Diverging Policy Approaches
Malaysia’s move comes as global regulators take sharply different stances on digital assets.
While Kuala Lumpur expands experimentation with stablecoins and tokenized finance, China has intensified restrictions on privately issued digital assets.
Earlier in February, the People’s Bank of China (PBOC) and seven other regulatory bodies issued a directive extending the country’s crypto crackdown to include stablecoins and tokenized real-world assets. The policy reinforces China’s longstanding effort to curb speculative crypto activity while promoting the state-backed digital yuan as a controlled alternative.
This divergence highlights a broader international trend:
- Some nations are embracing tokenization within regulated frameworks.
- Others are tightening restrictions while advancing sovereign digital currencies.
A Strategic Bet on the Digital Economy
Malaysia’s sandbox programs signal a cautious but deliberate move toward the tokenization of finance, positioning the country within a global race to modernize payments, settlement systems, and asset management through blockchain technology.
By combining regulatory oversight, institutional partnerships, and Shariah-compliant frameworks, BNM is testing how digital assets can evolve without undermining monetary stability.
As central banks worldwide weigh the future of money, Malaysia’s experiments suggest a pragmatic path forward — one where stablecoins, tokenized deposits, and CBDCs coexist as infrastructure tools rather than speculative instruments, shaping the next phase of the digital financial system.
