Standard Chartered and Capital A Explore Ringgit-Backed Stablecoin

Summary:
Standard Chartered Bank Malaysia and Capital A, the parent company of AirAsia, are making strides in Malaysia's digital asset space by planning to explore a stablecoin pegged to the Malaysian ringgit. This initiative aims to support institutional and wholesale use, enhancing Malaysia's digital asset ecosystem amid a broader national strategy.

Key Takeaways:

Standard Chartered and Capital A will jointly investigate a ringgit-backed stablecoin primarily designed for institutional and wholesale applications.
The pilot initiative will operate under Malaysia's Digital Asset Innovation Hub, reflecting the country's push for tokenization.
Malaysia is actively advancing its national digital asset strategy, attracting attention from local leaders.

On Friday, the two companies signed a letter of intent about the project under Malaysia’s Digital Asset Innovation Hub, which was introduced by Bank Negara Malaysia (BNM) in June to promote experimentation with tokenization and blockchain finance.

Standard Chartered and AirAsia Parent Explore Ringgit-Backed Stablecoin

Focus on Institutional Applications for the Ringgit Stablecoin

This initiative marks Capital A’s first significant entry into the regulated digital asset sector.

As part of this collaboration, Standard Chartered Malaysia is set to be the issuer of the ringgit-backed token. Meanwhile, Capital A along with its partners will focus on creating and testing use cases tailored for wholesale applications.

Both companies stressed that this pilot program is aimed at institutional and enterprise clients, rather than retail consumers.

The project is seen as a key piece in Malaysia’s broader goal to modernize payment systems, settlement processes, and capital markets with emerging technologies. Capital A emphasized that this partnership “supports Malaysia's ambitions,” suggesting that stablecoins could play a role in the long-term financial infrastructure of the country.

This effort follows a growing wave of interest among Malaysia's leadership, highlighted by the recent announcement of a different ringgit-backed stablecoin initiative led by the king’s eldest son.

BNM is rapidly moving in the digital assets space. Just last month, it revealed a three-year roadmap to pilot asset tokenization in live settings and established an Asset Tokenization Industry Working Group to facilitate development among banks, fintech companies, and regulators.

These initiatives are intended to create controlled environments for testing while also identifying potential legal and regulatory challenges ahead of more widespread adoption.

Since early 2025, Malaysia has been reevaluating its stance on digital assets, with government officials exploring a new national cryptocurrency policy.

Recently, Malaysia's Crown Prince took a significant step into the digital asset sector with the announcement of a state-backed stablecoin and an extensive crypto-treasury initiative.

Bullish Aim Sdn. Bhd., led by His Royal Highness Tunku Ismail Ibni Sultan Ibrahim, the Regent of Johor, has recently launched RMJDT, a ringgit-backed stablecoin developed on Zetrix, the Layer-1 blockchain driving Malaysia’s national Blockchain Infrastructure.

Proposal for Overhauling Crypto Exchange Regulations in Malaysia

In related news, the Securities Commission (SC) of Malaysia is proposing a significant overhaul of its Digital Asset Exchange (DAX) regulations in response to a dramatic increase in crypto trading volumes, which reached RM13.9 billion ($2.9 billion) in 2024—more than double the previous year.

The SC's consultation paper, which is available for feedback from June 30 to August 11, 2025, outlines reforms aimed at expediting token listings, enhancing governance, and improving investor protection as Malaysia's digital asset landscape matures.

Under these proposed regulations, eligible tokens could be listed on regulated exchanges without prior approval from the SC, as long as they meet certain criteria.

This change aims to eliminate regulatory delays and enable exchanges to respond more swiftly to market needs, while placing additional accountability on operators to ensure compliance and manage potential risks.

The SC also plans to raise governance standards, focusing on client asset segregation, better risk management, and higher financial requirements for DAX operators to boost security and investor trust.

These reforms are a part of Malaysia's wider initiative to modernize its fintech and cryptocurrency framework, paralleling Bank Negara Malaysia’s exploration of asset tokenization and CBDC pilots.

Despite advancements, regulators remain cautious, clarifying that cryptocurrencies are not considered legal tender and intensifying enforcement against unlicensed platforms such as Bybit and Huobi.