BNM to explore real-world tokenization use cases in Islamic finance, SME funding, green projects, and cross-border payments.
BNM Launches National Tokenization Framework
Bank Negara Malaysia (BNM) — the country’s central bank — has introduced a three-year roadmap to explore and implement asset tokenization across the financial sector, marking a significant step toward digital transformation of the Malaysian economy.
The initiative will be led through BNM’s Digital Asset Innovation Hub (DAIH), established earlier this year, and will include a series of proof-of-concept (POC) projects and live pilot programs aimed at testing the benefits of tokenized financial assets in real-world settings.
A newly formed Asset Tokenization Industry Working Group (IWG) — co-led by BNM and the Securities Commission (SC) — will coordinate industry engagement, share technical knowledge, and identify regulatory and legal challenges related to digital asset adoption.
Focus on Real-World Financial Use Cases
BNM emphasized that its tokenization roadmap does not target cryptocurrencies but focuses instead on real-world assets (RWA) to create tangible economic benefits.
Initial pilot use cases include:
- SME Supply Chain Financing: Expanding credit access through tokenized receivables.
- Shariah-Compliant Islamic Products: Automating Islamic finance contracts and ensuring adherence to Shariah principles.
- Green Finance: Tokenizing carbon credits and sustainability-linked assets.
- 24/7 Cross-Border Settlements: Enabling faster and programmable international payments.
BNM also plans to explore MYR-denominated tokenized deposits and stablecoins, ensuring the “singleness of money” while enhancing digital payment efficiency. Integration with wholesale central bank digital currency (CBDC) systems will also be studied to streamline settlement infrastructure.
Malaysia Aligns With Regional Leaders in Digital Finance
Through this initiative, Malaysia joins other Asian financial hubs — including Singapore’s Monetary Authority of Singapore (MAS) and Hong Kong’s Monetary Authority (HKMA) — in piloting asset tokenization frameworks to modernize national financial systems.
Public feedback on BNM’s discussion paper remains open until March 1, 2026, signaling a collaborative approach to policy formation.
Regulatory Support for Digital Asset Growth
Complementing BNM’s roadmap, Malaysia’s Securities Commission (SC) recently proposed a streamlined crypto listing framework. The policy would allow licensed exchanges to list pre-approved digital assets without prior regulator consent, provided they meet key criteria such as public security audits and compliance with FATF standards.
Malaysia’s tokenization roadmap underscores the nation’s commitment to developing a secure, inclusive, and Shariah-aligned digital financial ecosystem — positioning it as a key regional player in the next wave of blockchain-driven financial innovation.
Disclaimer
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