TLDR
- Standard Chartered and Capital A are developing a ringgit-pegged stablecoin for institutional and wholesale use in Malaysia.
- Standard Chartered Malaysia will issue the stablecoin, while Capital A will test institutional-focused use cases.
- The project operates under Malaysia’s Digital Asset Innovation Hub, which promotes blockchain and tokenization innovation.
- The collaboration aligns with Malaysia’s broader ambitions to modernize financial infrastructure through emerging technologies.
- The pilot aims to support Malaysia’s growth in digital assets and solidify its leadership in Southeast Asia’s financial sector.
Standard Chartered and Capital A, the parent company of AirAsia, have announced plans to develop a ringgit-pegged stablecoin in Malaysia. This collaboration aims to create a stablecoin for institutional and wholesale use. According to a letter that was signed today, the pilot project will operate under Malaysia’s Digital Asset Innovation Hub, a framework launched by Bank Negara Malaysia (BNM).
Standard Chartered to Issue Ringgit-Backed Token
Under the collaboration, Standard Chartered Malaysia will act as the issuer of the ringgit-backed stablecoin. Capital A will focus on designing and testing use cases tailored to institutional applications. The two companies emphasized that the stablecoin would serve enterprises rather than retail consumers.
“We are committed to supporting Malaysia’s aspirations for modernizing its financial infrastructure,” said a spokesperson from Capital A. The initiative aligns with Malaysia’s broader goals of transforming payments, capital markets, and settlement systems through emerging technologies.
This partnership marks Capital A’s first involvement in the digital asset space under regulated conditions. Standard Chartered has been at the forefront of digital asset developments in Asia and sees this project as a key step in enhancing Malaysia’s financial ecosystem.
Malaysia’s Digital Asset Innovation Hub Accelerates Development
Malaysia has been focused on developing its digital asset ecosystem. The Digital Asset Innovation Hub, a regulatory framework introduced by Bank Negara Malaysia (BNM), aims to foster blockchain and tokenization initiatives. The stablecoin initiative will help accelerate the tokenization of Malaysia’s financial markets.
BNM has launched several initiatives to explore the potential of digital assets. These include plans for live asset tokenization trials and collaboration with various industry players. The goal is to create a regulatory environment conducive to innovation while addressing potential risks.
With growing interest in stablecoins, Malaysia has also seen initiatives from other entities. Recently, the Crown Prince of Malaysia launched his own ringgit-backed stablecoin. This move highlights the country’s commitment to experimenting with digital currencies within a controlled environment.
Standard Chartered’s Role in Malaysia’s Digital Transition
Standard Chartered’s involvement in the stablecoin project is crucial. The bank’s expertise in digital banking and regulatory compliance positions it as a key player in Malaysia’s financial transition. The bank has expressed confidence in the country’s growing digital asset sector.
Additionally, the pilot project aligns with BNM’s vision to modernize Malaysia’s financial infrastructure. The collaboration between Standard Chartered and Capital A is expected to further solidify Malaysia’s position as a leader in digital finance in Southeast Asia.
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