Standard Chartered and AirAsia Parent Investigate Stablecoin Backed by Ringgit

Standard Chartered Bank Malaysia and Capital A, the parent company of AirAsia, are set to explore the creation of a stablecoin backed by the Malaysian ringgit, signaling a significant move into the country's digital finance sector.

Key Points

• The initiative targets a ringgit-backed stablecoin designed for institutional and wholesale applications.
• The pilot project operates under Malaysias Digital Asset Innovation Hub, supporting the nations push for tokenization.
• Malaysia continues to advance a national strategy for digital assets and modern financial infrastructure.

The two companies formalized their collaboration by signing a letter of intent to develop the stablecoin within the framework of Malaysias Digital Asset Innovation Hub. This hub, launched by Bank Negara Malaysia (BNM) in June, aims to foster experimentation in tokenization and blockchain-based financial solutions.

Institutional Focus for Ringgit Stablecoin

This project marks Capital As first step into regulated digital asset initiatives. Standard Chartered Malaysia will serve as the issuer of the ringgit-backed token, while Capital A and its partners will design and test use cases tailored to wholesale and institutional markets. The pilot will not target retail consumers.

The collaboration is aligned with Malaysias broader ambitions to modernize payment systems, settlement processes, and capital market infrastructure through emerging technologies. Capital A emphasized that the project supports Malaysias long-term financial infrastructure goals.

The initiative aligns with a growing interest in digital assets from Malaysias leadership, including a separate ringgit-backed stablecoin launched by the Crown Prince. BNM has been accelerating efforts in digital finance, unveiling a three-year roadmap for asset tokenization and forming an Asset Tokenization Industry Working Group to coordinate development among banks, fintechs, and regulators.

These efforts provide a controlled environment for testing while addressing legal and regulatory challenges ahead of wider adoption. Malaysia has been revising its approach to digital assets since early 2025, exploring a comprehensive national crypto policy. Recently, the Crown Prince announced RMJDT, a state-backed ringgit-pegged stablecoin issued on the national Malaysia Blockchain Infrastructure.

Regulatory Developments

Malaysias Securities Commission (SC) is proposing major reforms to the Digital Asset Exchange (DAX) framework in response to rapidly growing crypto trading volumes, which reached RM13.9 billion ($2.9 billion) in 2024. The proposed rules would allow eligible tokens to be listed on regulated exchanges without prior SC approval, provided they meet certain criteria. This aims to streamline token listings and improve market responsiveness.

The reforms also introduce stricter governance requirements, including client asset segregation, enhanced risk management, and higher financial thresholds for exchanges. These measures complement broader fintech modernization efforts, including BNMs exploration of asset tokenization and central bank digital currency pilots, while maintaining caution over the non-legal tender status of cryptocurrencies and enforcement against unlicensed platforms.

Sources:

• Standard Chartered and AirAsia Parent Explore Ringgit-Backed Stablecoin