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Fintech Malaysia is making a stronger push into digital finance as Bank Negara Malaysia (BNM) confirms that three new initiatives have been accepted into its Digital Asset Innovation Hub (DAIH) to test real-world use cases involving ringgit-backed stablecoins and tokenised deposits in 2026. Key Takeaways Malaysia will test ringgit stablecoins and tokenised deposits in 2026 under a controlled regulatory framework. The focus is on wholesale and cross-border payment use cases, including tokenised asset settlement. Greater regulatory clarity on ringgit-backed digital money is expected by the end of 2026. The initiative could lay groundwork for future wholesale CBDC integration. The move marks one of the clearest signals yet that the country is preparing a structured framework for regulated digital money tied to the national currency. Rather than launching directly into public circulation, the central bank will first conduct controlled trials focused on wholesale financial applications. Focus on Wholesale and Cross-Border Payments The three selected initiatives will concentrate on wholesale payment solutions, covering both domestic and cross-border transactions. A key objective is enabling the settlement of tokenised assets – a critical building block for digital securities, trade finance, and programmable financial contracts. All testing will take place in a supervised environment and involve collaboration between financial institutions, corporate clients, ecosystem partners, and in some cases, other regulators. Certain projects will also examine Shariah compliance considerations, reflecting Malaysia’s dual financial system and its role as a global Islamic finance hub. BNM said the trials will help evaluate the broader implications for monetary policy and financial stability. The findings are expected to shape future regulatory guidance. Clearer Policy Direction by End-2026 Importantly, the central bank intends to provide greater clarity on the use of ringgit stablecoins and tokenised deposits by the end of 2026. This suggests Malaysia is not only experimenting with blockchain-based money,…

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Filed under: News - @ February 12, 2026 10:26 am