Malaysia’s central bank, Bank Negara Malaysia (BNM), has unveiled a new blueprint for the nation’s digital financial future: a three-year roadmap to advance asset tokenization. Marking an important moment in Southeast Asia’s financial transformation, the plan will see BNM, in collaboration with regulators and industry players, embark on a structured journey to pilot real-world asset (RWA) tokenization, aiming to make finance more inclusive, resilient, and innovative.​

Malaysia’s Digital Vision

Announced on November 1, 2025, BNM’s asset tokenization roadmap is anchored in the Digital Asset Innovation Hub (DAIH) and a newly formed Asset Tokenization Industry Working Group, co-led with the Securities Commission Malaysia. The program’s three phases set the stage: 2026 will focus on proof-of-concept (PoC) projects and pilot testing; 2027 will expand upon live experimentation and scaling, with the entire initiative running through 2028. Public consultation is open until March 1, 2026, signaling a genuine invitation to co-create the future alongside the financial industry, fintechs, and the wider public.​

Real-World Impact

The roadmap zeroes in on tokenizing real-world assets to address pressing national needs:

1. Supply-chain finance & SME access: By tokenizing invoices and receivables, the program targets Malaysia’s estimated RM 101 billion SME financing gap, seeking to unleash greater liquidity for small and medium-sized businesses.

2. Islamic finance innovation: Malaysia, as a global leader in Islamic finance, sees a huge opportunity in tokenizing sukuk (Islamic bonds) and issuing Shariah-compliant smart contracts, modernizing a sector worth RM 2.4 trillion.

3. Green finance & sustainability: The roadmap includes tokenizing green bonds and linking payouts to independently verified climate metrics—a move poised to improve both transparency and investor trust as Malaysia grows its sustainable finance market.

4. Digital cash and cross-border payments: The plan investigates tokenized ringgit deposits, MYR-stablecoins, and even integration with wholesale central bank digital currency (CBDC), promising faster, programmable payments while safeguarding the “singleness of money”.​

Guiding Principles

BNM’s approach is rooted in delivering tangible economic benefits and reinforcing existing regulatory protections. The central bank emphasizes that tokenization efforts should only use distributed ledger technology (DLT) where it drives clear efficiency or market access advantages. Importantly, BNM’s stance on cryptocurrencies remains firm: digital assets created under this roadmap are expected to complement Malaysia’s traditional financial system, with cryptocurrency itself not recognized as legal tender.​

Industry Collaboration

Malaysia’s roadmap is part of a broader regional movement, with neighboring regulatory hubs like Singapore and Hong Kong also pioneering asset tokenization experiments. BNM’s industry working group will bring together banks, fintechs, infrastructure experts, and policymakers to identify legal and technical hurdles, propose best practices, and ensure that innovations deliver for both the private sector and society at large.​

Future Outlook

As pilot projects kick off in 2026, all eyes will be on how deeply asset tokenization can transform sectors from SME financing to green capital markets, and whether Malaysia can establish itself as a regional leader in safe, inclusive digital finance. With public comment open for discussion, Malaysia’s financial community stands at an inflection point and a new era for digital assets begins.