Standard Chartered and Capital A Plan Ringgit-Pegged Stablecoin Pilot in Malaysia

• Joint Initiative: Standard Chartered will issue the stablecoin, leveraging its infrastructure, while Capital A develops wholesale use cases within its ecosystem.

• This project aligns with Malaysia’s efforts to modernize payments and capital markets through regulated digital asset technology.

• The Digital Asset Innovation Hub, launched by Bank Negara Malaysia in June 2025, enables fintech firms to test innovations under regulatory oversight, with recent roadmaps emphasizing asset tokenization pilots.

Discover how Standard Chartered Malaysia and Capital A are pioneering a ringgit-pegged stablecoin to boost wholesale finance. Explore Malaysia’s digital asset advancements and their impact on the economy today.

What is the Ringgit-Pegged Stablecoin Initiative by Standard Chartered Malaysia and Capital A?

The ringgit-pegged stablecoin initiative involves Standard Chartered Bank Malaysia and Capital A, the parent company of AirAsia, collaborating to develop and test a stablecoin tied to Malaysia’s local currency, the ringgit. Announced via a letter of intent on Friday, this project operates under the Digital Asset Innovation Hub established by Bank Negara Malaysia in June 2025. It focuses on wholesale applications rather than retail, utilizing Standard Chartered’s financial infrastructure and Capital A’s ecosystem for piloting real-world use cases.

How Will This Ringgit-Pegged Stablecoin Function in Wholesale Applications?

The stablecoin will be issued by Standard Chartered Malaysia, ensuring stability through its peg to the ringgit and backing by reserves managed under strict regulatory guidelines. Capital A and its affiliated companies will handle the development, testing, and implementation of wholesale use cases, such as cross-border settlements and supply chain financing within aviation and logistics sectors. This approach draws on Standard Chartered’s global expertise in digital assets, as highlighted in their recent statements on blockchain integration.

Bank Negara Malaysia’s oversight through the Digital Asset Innovation Hub provides a controlled environment for innovation. According to BNM’s three-year roadmap unveiled last month, the initiative includes proof-of-concept projects and live pilots for asset tokenization, aiming to enhance efficiency in capital markets. Industry experts, including those from the newly formed Asset Tokenization Industry Working Group, emphasize that such stablecoins could reduce transaction costs by up to 30% in wholesale scenarios, based on preliminary studies from similar global implementations.

Malaysia’s shift toward embracing digital assets began intensifying in early 2025. In mid-January, government discussions focused on crafting a comprehensive cryptocurrency policy to modernize the financial system while mitigating risks. This stablecoin project supports these goals by fostering innovation without compromising financial stability.

Frequently Asked Questions

What Role Does Capital A Play in the Ringgit-Pegged Stablecoin Project?

Capital A, as AirAsia’s parent company, brings its extensive ecosystem in aviation, logistics, and e-commerce to the table, focusing on developing and piloting wholesale applications for the stablecoin. This marks their entry into the regulated digital asset space, collaborating with Standard Chartered to test use cases like efficient payments for international trade and supply chain operations, all under Bank Negara Malaysia’s supervision.

Why is Malaysia Advancing Stablecoin Adoption Through Regulatory Sandboxes?

Malaysia is advancing stablecoin adoption via regulatory sandboxes like the Digital Asset Innovation Hub to balance innovation with risk management, ensuring the country remains competitive in global finance. This structured approach allows for safe testing of technologies such as ringgit-pegged stablecoins, promoting economic growth through faster, cheaper transactions while protecting consumers and maintaining monetary sovereignty.

Key Takeaways

• Strategic Partnership: Standard Chartered’s issuance expertise combined with Capital A’s operational ecosystem positions this as a practical wholesale stablecoin solution for Malaysia’s evolving digital economy.
• Regulatory Support: Backed by Bank Negara Malaysia’s Innovation Hub and tokenization roadmap, the project underscores the central bank’s commitment to supervised fintech advancements since June 2025.
• Broad Implications: Successful pilots could streamline wholesale finance, inspiring further digital asset integrations and encouraging other firms to explore ringgit-pegged stablecoins for national growth.

Conclusion

The collaboration between Standard Chartered Malaysia and Capital A on a ringgit-pegged stablecoin represents a pivotal moment in Malaysia’s digital asset landscape, aligning with Bank Negara Malaysia’s vision for modernized payments and tokenization. By focusing on wholesale applications, this initiative demonstrates a measured approach to integrating stablecoins into mainstream finance, potentially setting precedents for regional innovation. As Malaysia continues to refine its cryptocurrency policies throughout 2025, stakeholders should monitor these developments for opportunities to participate in a more efficient, tech-driven economic future.

Malaysia is moving to ensure it is not left behind as more countries weave crypto and stablecoins into mainstream finance. The announcement from Capital A highlights how this effort supports national aspirations to modernize payments and capital markets with digital asset technology. High-level backing is evident, including the recent launch of a ringgit-pegged stablecoin by the eldest son of Malaysia’s billionaire king. The Digital Asset Innovation Hub facilitates testing under BNM oversight, while last month’s three-year roadmap for asset tokenization builds on the regulatory sandbox framework, anticipating proof-of-concept projects and live pilots. Additionally, BNM’s creation of an Asset Tokenization Industry Working Group aims to coordinate explorations, share knowledge, and address regulatory challenges.

Since early 2025, Malaysia has been reevaluating its digital asset strategy. Mid-January reports indicated government explorations into a cryptocurrency policy to recognize the industry and update the financial system. This stablecoin project fits seamlessly into these broader efforts, emphasizing fact-based progress in a professional, regulated manner.