Malaysia’s central bank launches asset tokenization initiative

The initiative will follow a phased approach, beginning with proofs of concept and pilot projects in 2026, and expanding to trials in 2027.

Key Takeaways

• Bank Negara Malaysia launched the Digital Asset Innovation Hub as part of its three-year initiative to explore asset tokenization in finance.
• An industry working group will gather industry feedback on potential tokenization use cases.

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Through a new Digital Asset Innovation Hub and industry working group, Bank Negara Malaysia has started a three-year program to evaluate how real-world asset tokenization can be applied to sectors like supply-chain and Islamic finance.

Bank Negara Malaysia has published a report inviting industry feedback on asset tokenization to guide future policies. The central bank aims to develop frameworks that support digital asset innovation while maintaining financial stability.

Malaysia recently introduced a “Climate Sukuk” that combines Islamic finance principles with digital tokenization and green initiatives. The country also approved its first Islamic digital bank incorporating stablecoins to advance Shariah-compliant digital finance.

The initiative positions Malaysia among nations actively exploring blockchain-based financial infrastructure. Supply-chain finance represents a key use case for tokenization pilots, potentially streamlining trade financing processes through digital assets.

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