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

Source: Air Asia

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 Chartereds 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.

Malaysias 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.