Standard Chartered, AirAsia parent to test ringgit stablecoin in Malaysia

Standard Chartered Bank Malaysia and Capital A, the parent company of AirAsia, plan to jointly explore a stablecoin pegged to Malaysia’s local currency, the ringgit.

In a statement Friday, the bank’s Malaysian arm and Capital A said they signed a letter of intent to explore a ringgit-pegged stablecoin under the country’s Digital Asset Innovation Hub, an initiative announced by Bank Negara Malaysia (BNM) in June.

This is Capital A’s first interaction with the regulated digital asset space. The initiative will rely on Standard Chartered’s infrastructure and financial expertise, as well as Capital A’s ecosystem, to pilot the stablecoin in a wholesale fashion, rather than focusing on the retail market.

Standard Chartered Malaysia will serve as the issuer of the stablecoin, while Capital A and companies within its ecosystem will be tasked with developing, testing, and piloting wholesale use cases.

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Malaysia is not getting left behind

Malaysia is moving to ensure it is not left behind as more countries weave crypto and stablecoins into mainstream finance. Capital A’s announcement stated that the effort “supports the aspirations of Malaysia,” positioning the stablecoin work as part of a broader national initiative to modernize payments and capital markets with digital asset technology.

That direction appears to have backing at the highest levels. The eldest son of Malaysia’s billionaire king recently launched a stablecoin pegged to the national currency. The Digital Asset Innovation Hub allows fintech and digital asset companies to test new technologies under BNM oversight.

Related: Illegal crypto mining surges in Malaysia amid unclear policies

Last month, BNM also unveiled a three-year roadmap to explore and test asset tokenization across the financial sector while building on the regulatory sandbox framework. The roadmap anticipates that the institution will launch proof-of-concept projects and conduct live pilots.

The central bank also decided to create an Asset Tokenization Industry Working Group to coordinate industry-wide exploration, share knowledge and identify regulatory and legal challenges in the country.

Malaysia has been considering a change in its approach to the digital asset industry since the beginning of 2025. In mid-January, the local government reportedly began exploring the possibility of establishing a cryptocurrency policy that could recognize the industry and modernize the nation’s financial system.