Bank Negara Malaysia launches roadmap to test asset tokenization

TLDR

Table of Contents

BNM introduces a three-year plan to test real-world asset tokenization.
The roadmap includes pilots for SME finance, green trade, and payments.
Tokenized deposits and MYR stablecoins are under review by regulators.
Malaysia joins Singapore and Hong Kong in exploring tokenized finance.

Malaysia is moving closer to digital financial transformation as its central bank launches a three-year roadmap to explore asset tokenization. The plan aims to test real-world applications such as small business financing, Shariah-compliant products, green finance, and cross-border payments. Through the initiative, Malaysia joins a growing list of Asian economies modernizing financial systems through blockchain-based infrastructure.

BNM Launches Tokenization Roadmap

Bank Negara Malaysia (BNM) announced the roadmap on Friday, outlining a structured plan to develop and test asset tokenization use cases. The initiative will be carried out under its Digital Asset Innovation Hub (DAIH), which was set up earlier in 2025 to drive financial sector innovation.

The central bank said it will launch several proof-of-concept (POC) projects and live pilots over the next three years to evaluate the benefits and challenges of tokenization in practical settings. According to BNM, the goal is to identify tokenized asset models that provide “clear economic value” to Malaysia’s economy and financial participants.

Industry Collaboration and Regulatory Coordination

As part of the roadmap, BNM will create an Asset Tokenization Industry Working Group (IWG) to coordinate efforts across the public and private sectors. The IWG will be co-led by BNM and the Securities Commission Malaysia (SC), bringing together regulators, financial institutions, and technology providers.

The working group will focus on identifying legal, operational, and regulatory challenges that could arise during the adoption of tokenized financial instruments. It will also guide the selection of use cases based on their potential to improve market efficiency, liquidity, and transparency. BNM said the group will serve as a central forum for sharing knowledge and promoting responsible innovation.

Focus on Real-World Use Cases

BNM clarified that the tokenization framework will focus strictly on real-world assets, not cryptocurrencies. The pilot projects will explore practical applications, including supply chain financing to help small and medium-sized enterprises (SMEs) gain better access to credit. Other areas of focus include tokenized liquidity management, Shariah-compliant Islamic finance products, and programmable payments that can automate settlement processes.

The central bank also plans to test use cases in green finance and 24/7 cross-border trade settlements. These initiatives aim to reduce transaction costs and enhance payment speed for businesses involved in international trade. “Tokenization can enhance financial inclusion and efficiency through secure, transparent digital platforms,” BNM said in its statement.

Integration With Digital Currency and Stablecoin Research

The roadmap also includes studies on the potential role of MYR-denominated tokenized deposits and stablecoins within Malaysia’s financial system. BNM said it wants to maintain the “singleness of money,” the principle that ensures all forms of digital and traditional money are equally interchangeable, while exploring more efficient settlement options.

The plan also envisions potential integration with wholesale central bank digital currency (CBDC) systems to improve transaction finality and reduce settlement risks. These developments will be evaluated alongside regional efforts by regulators such as Singapore’s Monetary Authority (MAS) and Hong Kong’s Monetary Authority (HKMA), both of which have launched tokenization pilots in recent years.

Industry Consultation and Next Steps

Malaysia’s approach emphasizes gradual experimentation supported by collaboration with market participants. The central bank has opened the roadmap for public and industry feedback until March 1, 2026, inviting comments from banks, fintech firms, and industry associations.

Once feedback is collected, BNM plans to refine its pilot projects and scale successful tokenization models within the domestic market. The initiative marks an important phase in Malaysia’s broader digital finance agenda, aiming to strengthen the country’s role in the regional tokenization ecosystem while maintaining financial stability and regulatory clarity.