KUALA LUMPUR, Bank Negara Malaysia (BNM) has unveiled a three-year plan to accelerate the tokenization of real-world assets, signaling its most structured move yet toward integrating blockchain technology into the national financial system under regulated conditions.
Laying the Foundation for Digital Assets
The roadmap spans from 2025 to 2027 and includes proof-of-concept projects and live pilot programs. Early initiatives will target tokenized financial instruments, digital settlement networks, and programmable payments. Key focus areas include:
- Supply-chain financing
- Islamic finance products
- Liquidity and treasury management
To coordinate these efforts, BNM and the Securities Commission Malaysia (SCM) have formed the Asset Tokenization Industry Working Group (IWG). This group brings together banks, fintechs, and infrastructure providers to test new systems, gather use-case data, and evaluate legal and regulatory hurdles.
Principles and Policy Stance
BNM’s framework stresses that tokenization should create tangible economic benefits, not just serve as a showcase for new technology. The central bank’s guiding principles highlight:
- Real-world economic impact
- Sensible technology choices (using DLT only when necessary)
- Feasibility within existing market infrastructure
The roadmap also outlines potential roles for tokenized deposits and ringgit-based stablecoins as on-chain settlement assets that could complement a wholesale central bank digital currency (CBDC), provided strong trust and regulatory safeguards remain in place.
Despite its push into digital assets, BNM reiterated that cryptocurrency is not legal tender in Malaysia and remains relatively small compared to the country’s banking system. The central bank reaffirmed its “same activity, same risk, same regulation” principle to maintain monetary and financial stability.
Regional Context and Future Outlook
This initiative positions Malaysia alongside regional leaders like Singapore and Hong Kong, which are exploring tokenized finance through regulated channels rather than speculative crypto markets. For local banks, fintech startups, and asset managers, the roadmap provides clarity on policy direction and collaboration opportunities.
However, success will depend on coordinated progress in several areas:
- Legal: ownership rights and custody models
- Technical: interoperability and blockchain maturity
- Regulatory: compliance with AML/CFT standards and investor protection
The next major milestone is a public consultation period ending in March 2026, during which BNM will collect industry feedback on its discussion paper. Analysts project that Malaysia’s tokenized asset market could grow to US$43 billion by 2030, reflecting the potential of this shift from theory to practice.
In essence, BNM’s roadmap marks Malaysia’s transition from digital asset exploration to real-world implementation, underscoring a commitment to building a regulated, blockchain-enabled financial ecosystem.
