Malaysia's Central Bank Balancing Blockchain Innovation with Monetary Stability in 3-Year Tokenization Push

Bank Negara Malaysia (BNM), the country's central bank, has launched a three-year roadmap to explore asset tokenization across financial sectors, aiming to modernize infrastructure and address real-world challenges, according to Cointelegraph. The initiative, announced on November 1, 2025, includes proof-of-concept (POC) projects and live pilots through the newly established Digital Asset Innovation Hub (DAIH). A key component is the Asset Tokenization Industry Working Group (IWG), co-led by BNM and the Securities Commission, which will prioritize foundational use cases demonstrating clear economic value, Coinfomania reported.

The roadmap emphasizes tokenization of real-world assets (RWAs) rather than cryptocurrencies, targeting applications such as SME supply chain financing, Islamic finance automation, green finance, and 24/7 cross-border settlements, as noted by Coinpedia. BNM highlighted that tokenized deposits and stablecoins denominated in the Malaysian ringgit (MYR) will be studied to balance digital efficiency with monetary stability. Wholesale central bank digital currency (CBDC) integration is also under exploration, according to a Coinpedia article.

The central bank stressed that blockchain adoption must deliver tangible benefits and technical feasibility. Projects will be evaluated based on three principles: real-world value, avoidance of treating distributed ledger technology (DLT) as a standalone solution, and compatibility with existing infrastructure, per LookOnChain. By 2027, Malaysia aims to expand trials beyond initial pilots, aligning with regional efforts by regulators like Singapore's MAS and Hong Kong's HKMA, as noted in a Cointelegraph piece.

Industry feedback on the roadmap's discussion paper is open until March 1, 2026, with BNM inviting banks, fintech firms, and developers to propose use cases, according to CryptoNews. This collaborative approach seeks to strengthen Malaysia's regulatory framework while fostering local blockchain expertise.

Beyond BNM's initiatives, Malaysia's financial sector is already embracing tokenization. Maybank recently partnered with Marketnode and BNP Paribas to tokenize its Money Market Fund, enhancing accessibility and transparency for investors. Meanwhile, Reuters reported that BTCC Exchange recorded $29 billion in trading volume for tokenized RWA futures in Q2–Q3 2025, underscoring growing demand for blockchain-linked traditional assets.