CMC News

Malaysia Launches Three-Year Asset Tokenization Initiative

Bank Negara #Malaysia has announced a comprehensive three-year roadmap to explore and test #asset-tokenization across the financial sector. The central bank will launch proof-of-concept projects and live pilots through its Digital Asset Innovation Hub, established earlier this year.

The initiative includes the creation of an Asset Tokenization Industry Working Group, co-led by Bank Negara Malaysia and the Securities Commission. The working group will coordinate industry-wide exploration, share knowledge, and identify regulatory and legal challenges facing #tokenization implementation.

Bank Negara Malaysia clarified that the roadmap focuses on real-world assets rather than cryptocurrencies. Priority use cases include supply-chain financing to expand SME credit access, tokenized liquidity management for faster settlement, and Islamic finance applications automating Shariah-compliant transactions.

Additional focus areas encompass programmable payments, green finance initiatives, and 24/7 cross-border trade settlements. The central bank plans to study MYR-denominated tokenized deposits and #stablecoins while preserving monetary singleness and enabling efficient digital settlement.

Wholesale central bank digital currency integration will also be explored as part of the broader tokenization framework. The central bank emphasized that tokenization must demonstrate clear economic value rather than serve as purely technological experimentation.

Bank Negara Malaysia stated that distributed ledger technology should be employed exclusively where it creates demonstrable value. The bank noted many issues may be better resolved using APIs rather than #blockchain technology.

The initiative begins with conventional financial instruments, including bonds, loans, and deposits, before expanding to more complex assets.