Malaysia's Crown Prince Introduces Ringgit-Backed Stablecoin and Zetrix Treasury

In a significant development for the cryptocurrency landscape, the eldest son of Malaysia's king has announced the launch of a stablecoin pegged to the Malaysian ringgit. This initiative aims to facilitate payments throughout the Asia-Pacific region.

Key Takeaways

Launch of RMJDT: The new stablecoin, RMJDT, will be linked to Malaysia’s ringgit.
Zetrix Blockchain: RMJDT will operate on Zetrix, a layer-1 blockchain aimed at enhancing cross-border connectivity.
Regulatory Framework: The stablecoin is being launched within Malaysia's regulated sandbox established by the Securities Commission and Bank Negara Malaysia.
Digital Asset Treasury: A treasury worth 500 million ringgits ($121.5 million) in Zetrix tokens will also be part of the initiative.

Malaysia’s crown prince launches ringgit stablecoin, Zetrix treasury

A New Stablecoin for the Asia-Pacific

Bullish Aim, a telecom company owned by Ismail Ibrahim, the son of Sultan Ibrahim Iskandar of Johor, has revealed plans for RMJDT, a stablecoin backed by the Malaysian ringgit. This stablecoin is set to be launched on Zetrix, a layer-1 blockchain aimed at bridging governments, businesses, and individuals within the Web3 economy, with a particular focus on cross-border integrations, especially with China.

Alongside this stablecoin, Bullish Aim is also establishing a digital asset treasury (DAT) company, starting with an allocation of 500 million ringgits in Zetrix (ZETRIX) tokens.

Regulatory Environment for Launch

According to the announcement, RMJDT is being issued under Malaysia's regulatory sandbox framework, aimed at testing innovative financial solutions like stablecoins. Established in June, this sandbox's goal is to explore various use cases for digital assets, including programmable payments and supply chain financing.

Asia, Government, Payments, Malaysia, Digital Asset Holdings, Stablecoin Bullish Aim’s managing director Lion Peh, Malaysia’s Crown Prince Ismail Ibrahim and Zetrix co-founder TS Wong (from left to right). Source: Bullish Aim/Zetrix

Ismail Ibrahim has noted that RMJDT is aimed at increasing the international use of the Malaysian ringgit for cross-border trade and attracting foreign investment in the country, aligning with global trends in tokenization and supporting Malaysia’s Digital Asset National Policy.

Digital Asset Treasury Plans: A Model for Success?

Concerning the established Zetrix digital asset treasury, Bullish Aim mentioned plans to raise the treasury to $243 million. This strategy draws inspiration from successful ventures like Michael Saylor's MicroStrategy, which has amassed 660,624 Bitcoin since it adopted its Bitcoin investment strategy in 2020.

"As RMJDT's issuer, we believe that creating a Zetrix-token treasury is essential for operational stability and alignment with the national blockchain," said Ismail.

Entering the DAT market comes as many firms in this space face challenges. Ismail’s recent $2.7 billion bid for land in Singapore indicates that well-funded entities are still making significant investments despite concerns about the sustainability of the DAT model.

James Butterfill, head of research at CoinShares, hinted that the DAT bubble might have burst after a recent market rally. He suggested that the future of DATs will depend on core principles like effective treasury management and credible business models.

Cointelegraph attempted to reach Bullish Aim for insights on its stablecoin and DAT strategies but had not heard back by the time of publication.

Related: Digital asset treasury boom stalls as flows drop to $1.3B and stocks tumble

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