Paul Johnson Standard Chartered and Capital A, the parent company of AirAsia, are collaborating to issue and test a ringgit stablecoin under Malaysia’s Digital Asset Innovation Hub, marking a major step in the country’s digital finance evolution.
Standard Chartered and Capital A join forces on ringgit stablecoin pilot
Standard Chartered Malaysia and Capital A, the parent company of AirAsia, have announced plans to jointly develop and test a ringgit stablecoin as part of Malaysia’s growing digital asset ecosystem. The project will run under the supervision of Bank Negara Malaysia’s Digital Asset Innovation Hub, an initiative designed to encourage financial institutions and technology players to experiment with tokenization, stablecoins, and new payment models.
This marks Capital A’s debut in the regulated digital asset space, signaling the company’s move toward financial innovation beyond aviation and travel. Standard Chartered Malaysia will take on the role of issuer for the ringgit stablecoin, while Capital A will leverage its vast ecosystem to design and pilot real-world use cases for the token. The focus will be on wholesale applications, targeting institutional and enterprise use rather than retail users.
Malaysia accelerates digital transformation through stablecoin innovation
The collaboration between Standard Chartered and Capital A underscores Malaysia’s intent to stay at the forefront of the regional race toward digital financial modernization. In recent months, the country has seen a surge of initiatives tied to blockchain, asset tokenization, and stablecoin development, as regulators aim to balance innovation with oversight.
The ringgit stablecoin pilot supports the nation’s broader goals to enhance payment efficiency, strengthen financial inclusion, and reduce cross-border settlement frictions. For Malaysia, where trade and remittances play a major role in the economy, the stablecoin experiment could serve as a testing ground for faster and more transparent digital settlements anchored in a regulated framework.
Industry experts view the project as a signal that stablecoins are shifting from speculative instruments toward infrastructure-level tools for financial transformation. By combining Standard Chartered’s institutional credibility with Capital A’s tech-forward ecosystem, the partnership positions Malaysia as an emerging hub for regulated digital assets in Southeast Asia.
Digital Asset Innovation Hub boosts industry confidence
The ringgit stablecoin initiative falls under Malaysia’s Digital Asset Innovation Hub, launched by Bank Negara Malaysia to create a safe environment for experimenting with blockchain-based solutions. The hub allows financial institutions, fintechs, and startups to test products under central bank supervision while ensuring compliance with national financial laws.
Bank Negara Malaysia’s ongoing three-year roadmap emphasizes experimentation with asset tokenization, live pilots, and proof-of-concept projects. The roadmap also includes the creation of an Asset Tokenization Industry Working Group, which will bring together financial institutions, regulators, and digital asset firms to identify both opportunities and policy challenges.
This collaborative regulatory approach signals Malaysia’s willingness to move from observation to real-world adoption. The central bank’s openness to stablecoin pilots reflects growing recognition that digital currencies can coexist within the traditional banking framework while enhancing transparency and efficiency.
Capital A expands beyond aviation into fintech
For Capital A, best known for its airline brand AirAsia, the move into the ringgit stablecoin initiative represents a major leap into digital finance. The company has been expanding its portfolio across digital travel, logistics, and fintech through its AirAsia Super App and BigPay. The stablecoin pilot gives Capital A a new dimension of financial utility across its ecosystem, enabling future possibilities in payments, loyalty programs, and corporate transactions.
The collaboration with Standard Chartered also highlights how legacy banks and tech-driven enterprises can jointly bridge the gap between traditional finance and decentralized systems. Standard Chartered, with its global expertise in financial infrastructure and custody solutions, provides the compliance and trust backbone necessary to legitimize such projects within regulatory boundaries.
If the ringgit stablecoin proves successful, it could pave the way for more tokenized financial products in Malaysia, including digital bonds, asset-backed tokens, and cross-border remittance platforms. The success of this pilot could also influence regional neighbors to explore similar frameworks for regulated stablecoins tied to local currencies.
Malaysia’s evolving digital asset landscape
Malaysia’s growing focus on blockchain-based financial innovation has been evident since early 2025. The government has been exploring frameworks to recognize cryptocurrency-related businesses, establish clearer policies for exchanges and issuers, and modernize its approach to tokenized financial instruments.
The eldest son of Malaysia’s king recently launched a separate ringgit-pegged stablecoin, reflecting strong institutional support for the technology. These moves indicate that the country’s leadership views digital assets as a key component of national financial modernization.
As stablecoins gain traction globally, Malaysia’s strategic steps—such as this pilot with Standard Chartered and Capital A could strengthen its regional standing as a compliant and innovation-friendly jurisdiction. The ringgit stablecoin initiative is expected to demonstrate how digital currencies can coexist with existing financial structures while improving liquidity, transparency, and transactional speed.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
