Hyperliquid News Today: Malaysia's Approach to Blockchain: BNM Focuses on Real Value Rather Than Hype in Tokenization Efforts

Bank Negara Malaysia (BNM) has introduced a comprehensive three-year plan to investigate the tokenization of real-world assets (RWA), aiming to establish Malaysia as a frontrunner in the region for integrating blockchain technology with conventional financial systems. Announced in November 2025, the initiative includes the creation of a Digital Asset Innovation Hub (DAIH) to trial applications in areas such as supply-chain finance, Islamic banking, and international trade settlements, as reported by

. The roadmap outlines a step-by-step strategy, beginning with proof-of-concept projects in 2026 and expanding to broader pilots in 2027, according to .

BNM’s approach is guided by three core principles for tokenization: delivering practical real-world advantages, ensuring technical viability, and utilizing distributed ledger technology (DLT) only when it provides clear added value, as stated by

. The central bank has made it clear that DLT is not a one-size-fits-all solution, emphasizing that traditional tools like APIs may still be more suitable for certain cases, a point emphasized by . All projects must comply with Malaysia’s regulatory and Shariah requirements, ensuring both innovation and adherence to local frameworks, as highlights.

One of the main objectives is to tackle Malaysia’s RM101 billion SME funding gap by tokenizing invoices, thereby improving credit access for small businesses, according to

. In the realm of Islamic finance, blockchain could streamline Shariah-compliant contracts, boosting both transparency and operational efficiency in a sector where Malaysia already holds a global leadership position, as noted by . The roadmap also focuses on cross-border trade settlements and sustainable finance, with pilot projects designed to enable round-the-clock transactions and support environmentally friendly initiatives, as reported by .

Collaboration across the industry is a cornerstone of this plan. BNM has set up an Asset Tokenization Industry Working Group (IWG), co-led with the Securities Commission Malaysia (SC), to oversee pilot programs and address regulatory issues. Financial institutions, fintech companies, and technology providers are encouraged to submit their use-case proposals by March 1, 2026. The DAIH will act as a sandbox for these projects, with outcomes shaping future licensing policies for tokenized financial services.

Malaysia’s strategy is in line with broader regional trends. Both the Monetary Authority of Singapore (MAS) and the Hong Kong Monetary Authority (HKMA) are running pilots for tokenized assets like bonds and stablecoins. BNM’s roadmap references these initiatives as models, aiming to synchronize with the region’s evolving digital finance environment. By focusing on sustainable economic impact rather than speculative ventures, Malaysia hopes to foster regulated innovation and avoid the instability often seen in open cryptocurrency markets.

The plan also considers the development of MYR-backed tokenized deposits and stablecoins, stressing the importance of maintaining a one-to-one equivalence between bank deposits and central bank liabilities. Another priority is testing wholesale CBDC integration for interbank settlements, with pilots planned to assess compatibility with current systems. BNM’s measured, research-oriented approach stands in contrast to more aggressive global experiments, seeking a balance between innovation and regulatory assurance.

If the roadmap succeeds, it could transform Malaysia’s financial landscape by streamlining lending, asset management, and trade finance. The country may also become a center for Shariah-compliant blockchain solutions, leveraging its strengths in Islamic finance to encourage adoption. By 2027, Malaysia could establish itself as a major force in Southeast Asia’s regulated tokenized finance sector, merging advanced technology with strong institutional governance.