Malaysia’s central bank, Bank Negara Malaysia (BNM), has announced a structured three-year plan starting in 2026 to pilot asset tokenization. This initiative aims to convert real-world assets like invoices, bonds, and deposits into digital tokens using blockchain technology to make financial transactions faster, more efficient, and accessible.
What is Asset Tokenization?
Asset tokenization means turning physical or financial assets into digital tokens that can be easily traded or managed on digital systems. This innovation could help small and medium businesses get loans faster, modernize Islamic finance with digital Islamic bonds, promote green finance through tokenized green bonds, and improve payment systems including cross-border payments.
The Three-Year Roadmap
- 2026: Proof-of-concept tests and pilot projects will begin.
- 2027-2028: Successful pilots will expand and scale based on findings.
- The initiative is led by BNM’s Digital Asset Innovation Hub and an Asset Tokenization Industry Working Group which includes the Securities Commission Malaysia.
Focus Areas
- Enhancing SME financing through tokenizing invoices and receivables.
- Developing Shariah-compliant smart contracts and tokenized Sukuk for Islamic finance.
- Boosting green finance transparency via tokenized green bonds linked to climate goals.
- Exploring tokenized deposits, stablecoins, and integration with central bank digital currency for efficient payments.
- Modernizing Malaysia’s financial infrastructure by combining traditional finance with blockchain-based digital systems.
Important Considerations
- Regulations and legal frameworks around tokenization will be carefully shaped for security and compliance.
- The technology must integrate well with existing financial systems and prove real economic value, avoiding hype.
- Risk management regarding financial stability, cyber-security, and investor protection is key.
- BNM welcomes industry feedback on the roadmap discussion paper until March 1, 2026.
This plan places Malaysia alongside advanced economies like Singapore and Hong Kong in testing digital asset tokenization to improve financial efficiency and accessibility.
For more details, you can visit the official Bank Negara Malaysia announcement link here:
https://www.bnm.gov.my (search for asset tokenization roadmap or visit their News and Publications section for the discussion paper and updates).