Ringgit stablecoin pilots advance in Malaysia with Capital A

Malaysia’s push into digital assets is accelerating as officials and private firms begin testing a ringgit stablecoin within the country’s regulated framework.

Capital A and Standard Chartered sign letter of intent

Tony Fernandes, founder of AirAsia and head of Capital A, has moved to formalize a new digital asset initiative with Standard Chartered Bank Malaysia Bhd. The two firms have signed a letter of intent to explore a ringgit-backed token that would operate as a regulated stable digital currency.

The agreement, announced in a statement on Friday, aims to develop and test the token within a digital-asset innovation hub overseen by Bank Negara Malaysia. Moreover, the framework provides a controlled environment to examine compliance, technology and potential use cases before any wider rollout.

Ringgit-backed stablecoin project within central bank sandbox

The trial will focus on a stablecoin fully backed by the Malaysian ringgit, with issuance and redemption expected to mirror the underlying fiat value on a one-to-one basis. However, full technical specifications and timelines have not yet been disclosed by either Capital A or Standard Chartered Bank Malaysia Bhd.

According to the partners, the initiative will use the central bank’s digital innovation hub to test settlement flows, risk controls and customer protection mechanisms. That said, any transition from pilot to commercial product would still depend on regulatory approvals and detailed guidance from the monetary authority.

Momentum builds after royal-backed token announcement

The deal between Capital A and the Malaysian unit of Standard Chartered comes just days after a Malaysian royal figure announced the launch of a separate token project tied to the national currency. This sequence suggests growing institutional interest in ringgit-linked digital instruments across the country.

Against this backdrop, the new collaboration around a ringgit stablecoin reinforces Malaysia’s emerging role in Southeast Asia’s digital currency experiments. Moreover, it may complement broader discussions on Malaysia crypto regulation and cross-border payment efficiency in the region.

For now, the pilot remains at the exploratory stage, but the involvement of major names such as Capital A and Standard Chartered Bank Malaysia Bhd. indicates that regulated stable tokens could soon play a larger role in the country’s financial infrastructure.