Bank Negara Malaysia (BNM) has introduced a new roadmap through the Digital Asset Innovation Hub, which serves as a center to test and develop asset tokenization technology in the country's financial system.
Through this initiative, BNM will conduct proof-of-concept projects and live pilot programs to test the use of tokenization across various sectors, including small and medium enterprise (SME) financing, Islamic financial products, green investments, and cross-border payments.
To coordinate efforts across sectors, an Asset Tokenization Industry Working Group has also been established, co-chaired by BNM and the Securities Commission (SC).
The group will assess regulatory and legal challenges, as well as formulate best practices to ensure that any token solutions developed bring real economic benefits and comply with Malaysia's financial and Shariah frameworks.
BNM stressed that the primary focus of this initiative is not on cryptocurrencies, but rather on real-world applications such as tokenized deposits, programmable payments, and liquidity management.
At the same time, the central bank will explore the potential of ringgit (MYR)-denominated stablecoins and their integration with the central bank digital currency (CBDC) system to improve the efficiency and security of the digital financial system without compromising the national currency’s singularity.
With the launch of this plan, Malaysia now joins the ranks of Asian countries such as Singapore and Hong Kong that are actively exploring how blockchain technology can strengthen financial infrastructure. Public feedback on the plan is open until March 2026.
The announcement comes after the Securities Commission’s proposal in July to facilitate the listing process of cryptocurrencies on regulated exchanges, thus signaling Malaysia’s increasing openness to digital asset innovation.
