Malaysia's Central Bank Announces Roadmap for Asset Tokenization Pilot

Overview of the market context

Malaysia’s central bank, Bank Negara Malaysia (BNM), has announced a three-year strategic roadmap designed to pilot and accelerate the development of asset tokenization infrastructure nationwide. The initiative marks a decisive shift in policy toward blockchain-based finance, aiming to position Malaysia as a regional leader in tokenized assets, from securities and real estate to digital goods and products.

In recent years, global financial systems and regulators have moved from viewing blockchain technology as purely speculative to viewing it as a foundational infrastructure for capital markets and payments.

Tokenization — converting real assets into digital tokens on a blockchain — offers benefits including greater liquidity, fractional ownership, faster payments and greater transparency. In Southeast Asia, Malaysia faces competition from Singapore, Hong Kong and others, making BNM’s roadmap both timely and strategic.

IWG, Hub and Phased Pilot

The framework, detailed in a BNM discussion paper, will be rolled out over three years, prioritizing “viable, practical DLT innovation” through structured experimentation rather than widespread speculation. Core components include:

• Asset Tokenization Industry Working Group (IWG): Co-chaired by BNM and private sector leaders from banks like Maybank and issuers like JPYC (yen stablecoin), the IWG will meet quarterly to identify use cases, draft standards, and mitigate risks—with a focus on tokenized bonds, real estate, and carbon credits.

• Digital Asset Innovation Hub: A testing framework for 20-30 pilot projects, providing regulatory testing frameworks with a fast-track approval process for RWAs under $100 million, with an emphasis on Islamic-compliant structures such as sukuk tokenization.

• Phased rollout: Year 1 (2026) testing feasibility in the wholesale market; Year 2 expanding to retail pilots; Year 3 integrating with CBDC trials, targeting $5 billion in tokenized assets by 2028.

Governor Nor Shamsiah Yunus stressed the balance: “ Coding should enhance stability, not undermine it—our roadmap protects innovation within a robust framework. ”

The initiative, with a budget of $50 million, leverages Malaysia's $1.2 trillion Islamic finance market—10% of the global total—for Shariah-compliant RWAs.

Evaluation and Conclusion

This roadmap serves multiple strategic goals for Malaysia. By promoting tokenization, the country aims to attract fintech capital and asset tokenization, diversify the financial sector beyond traditional banking, and foster innovation among local asset managers, fund managers, and real estate developers. Furthermore, this roadmap aligns with global trends: as major jurisdictions explore digital bonds, tokenized stocks, and programmable currencies, Malaysia is demonstrating its “plug-and-play” intent for the next generation of financial infrastructure.

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