Standard Chartered and AirAsia Parent Company to Develop Ringgit-Pegged Stablecoin
Collaboration Overview
Standard Chartered Bank Malaysia and Capital A, the parent company of AirAsia, are venturing into Malaysia’s digital asset space by planning to develop a stablecoin pegged to the Malaysian ringgit. This collaboration aims to create a stablecoin designed for institutional and wholesale applications, operating under Malaysia’s Digital Asset Innovation Hub. The initiative aligns with the country’s broader strategy to integrate digital assets into its financial ecosystem.
Regulatory Framework
The two companies have signed a letter of intent to collaborate on this project under the regulatory framework established by Bank Negara Malaysia (BNM), which aims to foster innovation in tokenisation and blockchain‑based finance. Under the plan, Standard Chartered Malaysia will issue the ringgit‑backed token, while Capital A and its partners will develop and test use cases focused on wholesale applications. The pilot programme will prioritise institutional and enterprise use rather than retail consumers.
Strategic Importance
Both companies view this project as a step toward modernising Malaysia’s payment systems, settlement processes, and capital markets using emerging technologies. Capital A highlighted that the collaboration supports Malaysia’s long‑term financial goals and could integrate stablecoins into the national financial infrastructure.
Broader Market Context
This move reflects a wider trend in Malaysia, where interest in digital assets is growing. For example, the eldest son of the nation’s king has launched a separate ringgit‑backed stablecoin. Additionally, BNM has been actively promoting asset tokenisation through various initiatives.
Regulatory Landscape
Malaysia’s Securities Commission has proposed reforms to update its regulatory framework for Digital Asset Exchanges (DAX) to accommodate increasing crypto trading volumes. These reforms aim to expedite token listings, improve governance, and enhance investor protection. Despite these advancements, regulators remain cautious, emphasising that cryptocurrencies are not legal tender and cracking down on unlicensed exchanges.
Conclusion
The collaboration between Standard Chartered Malaysia and Capital A marks a significant step in Malaysia’s journey toward integrating digital assets into its financial system. As the country continues to explore the potential of blockchain technology and stablecoins, this initiative could pave the way for more innovative solutions in payments and capital markets.
