PETALING JAYA: Capital A Bhd and Standard Chartered Bank Malaysia Bhd have signed a letter of intent to jointly explore the development and testing of a ringgit-denominated stablecoin through the Digital Asset Innovation Hub (DAIH) under Bank Negara Malaysia (BNM).
The initiative marks Capital A’s first major foray into regulated digital assets, leveraging Standard Chartered’s institutional-grade infrastructure and financial expertise and Capital A’s extensive ecosystem of companies to focus on wholesale digital asset use cases.
Under this initiative, Standard Chartered Malaysia would serve as the issuer of the ringgit stablecoin to conceptualise, test and deliver this innovation. Capital A and its ecosystem will jointly develop, test and potentially pilot real-world wholesale use cases.
In a statement today, the company said the initiative supports the aspirations of Malaysia to pursue responsible innovation in digital assets by acknowledging the potential of local-currency digital assets in strengthening domestic liquidity, enhancing operational efficiency and enabling next-generation financial services.
DAIH serves as a platform for BNM and the industry to co-create and test innovative solutions, with a view to inform responsible development of digital asset related innovations and the formulation of an appropriate regulatory environment to support such initiatives.
Capital A CEO Tan Sri Tony Fernandes said, “The future of finance is digital, and this LoI marks a significant milestone in our transformation from an aviation-centric group into a trusted, technology-led ecosystem. An MYR stablecoin developed with Standard Chartered’s expertise and tested under BNM’s DAIH can unlock real potential for our enterprise operations – spanning real-time settlements, better treasury management, and programmable flows that ultimately improve how we serve our customers. With Capital A being a multi-platform travel and digital group, we can bring practical, high-impact use cases at scale to Malaysians and the Asean region.”
Meanwhile, Standard Chartered Malaysia CEO Mak Joon Nien commented, “With 150 years history as the oldest operating bank in Malaysia, Standard Chartered has always embraced innovation to support the country’s growth. Digital assets are a core part of the bank’s strategy and entering the stablecoin sandbox with like-minded partners like Capital A reflects that same commitment in shaping the architecture of tomorrow’s financial economy and be at the forefront of creating greater financial inclusion.
“This initiative allows us to extend our expertise into the fast-evolving digital asset ecosystem and support digital asset-linked products, providing institutional corporates with the assurance they require.”
Both Capital A and Standard Chartered Malaysia will now undertake further assessment of technical, regulatory and commercial considerations under BNM’s DAIH.
The proposed initiative aligns both Capital A’s mission to deliver smarter, faster and more connected experiences across its ecosystem, strengthening the Group’s ability to serve customers and partners with greater efficiency and innovation and Standard Chartered’s strategy of digital assets being an important and permanent part of the future of financial services.
