Malaysia's Ringgit Stablecoin Pilots: A Flow Test for Wholesale Payments

Bank Negara Malaysia (BNM) has launched a formal testbed for ringgit stablecoins and tokenized deposits. The central bank's Digital Asset Innovation Hub (DAIH) has onboarded three initiatives to explore wholesale payment applications in a controlled environment this year. The core focus is on domestic and cross-border settlement, including the potential for tokenized asset transactions.

Specific projects are already underway. Standard Chartered and Capital A will explore ringgit stablecoins for business-to-business settlement, while Maybank and CIMB will test tokenized deposits for payments. These trials involve collaboration with corporate clients and regulators, with certain use cases also assessing Shariah-related considerations. The goal is to evaluate real-world flow mechanics before any broader rollout.

BNM's timeline is clear: it aims to provide greater clarity on the use of ringgit stablecoins and tokenised deposits by end-2026. The testing is designed to assess implications for monetary and financial stability, directly informing future policy. This controlled flow experiment could also serve as a precursor to integrating these instruments with BNM's ongoing wholesale central bank digital currency (wCBDC) work.

The Flow Mechanics: Targeting Payment Liquidity

The pilots are designed to target specific, high-value payment flows where speed and efficiency are critical. The core objective is to enable settlement of tokenised assets and streamline tokenized liquidity management for faster settlement. This aims to reduce traditional settlement times and counterparty risk in wholesale transactions, directly improving payment liquidity for large financial institutions and corporates.

Tokenized deposits are a key instrument for this. By testing them for payments, the trials seek to streamline liquidity management for participants. This could allow for near-instantaneous movement of funds between institutions, replacing slower, manual processes and freeing up capital more efficiently. The focus on 24/7 cross-border trade settlements further highlights the target: frictionless, high-volume flows across borders.

The inclusion of Shariah-related considerations in certain use cases signals a focus on specific, high-value domestic and regional flows. This targeted approach ensures the pilots test real-world applications with clear economic value, such as automating Islamic finance transactions. The controlled testing will reveal whether these digital instruments can reliably handle the volume and speed required for wholesale payment systems.

Catalysts and Risks: The Path to Clarity

The primary near-term catalyst is BNM's stated goal to provide greater clarity on the use of ringgit stablecoins and tokenised deposits by end-2026. This policy signal will determine whether the pilots succeed in demonstrating tangible flow benefits over existing systems, a hurdle the central bank has explicitly set. Success depends on the trials proving they can handle real-world volume and speed, moving beyond theoretical advantages.

A key risk is that the pilots remain confined to a controlled environment, limiting their real-world liquidity impact and adoption. The central bank's selection principles emphasize that tokenization must deliver tangible real world benefits that are proven, not assumed. If the tests fail to show a clear, measurable improvement in settlement speed or liquidity efficiency, the path to broader financial sector use could stall.

The phased approach outlined by BNM includes proofs of concept and pilots in 2026, followed by expanded trials in 2027. This timeline provides a clear roadmap but also a deadline for the initial tests to produce compelling data. The central bank's invitation for industry input on use cases by March 1, 2026, adds another near-term checkpoint for market feedback.