Bank Negara Malaysia (BNM), the country's central bank, has launched a three-year roadmap to explore the tokenization of real-world assets (RWA) within its financial system. This initiative marks a significant step towards integrating blockchain technology into Malaysia's financial infrastructure. The roadmap includes pilot projects expected to begin in 2026, focusing on practical use cases like supply chain finance and Islamic finance.
The central bank's plan outlines a phased approach to exploring tokenization under real market conditions. BNM has established a Digital Asset Innovation Hub (DAIH) and an industry working group to drive the project. The roadmap sets clear milestones, with proof-of-concept and pilot programs slated for 2026, followed by expanded trials in 2027. This timeline positions Malaysia as one of the early adopters in Asia exploring blockchain-based solutions for traditional finance.
The Asset Tokenization Industry Working Group (IWG) will be jointly led by the central bank and the Securities Commission (SC). It will promote industry exploration, knowledge sharing, and regulatory coordination. BNM is also inviting industry input on use cases by March 1, 2026, and has outlined specific criteria for eligible experiments.
The initial pilot programs will focus on application scenarios with clear economic value. These include supply chain financing to expand credit access for SMEs, tokenized liquidity management to improve settlement efficiency, and compliant applications that can automatically execute Islamic financial transactions. BNM also plans to explore RM100-denominated tokenized deposits and stablecoin solutions to ensure currency consistency and improve digital settlement efficiency. Furthermore, integration with wholesale central bank digital currencies (CBDCs) will be explored.
BNM aims to address real-world challenges, such as the RM101 billion SME financing gap, by turning invoices into digital tokens to help small businesses access cheaper loans. Tokenization will also be applied to Islamic finance, leveraging tokenized sukuk and smart contracts to automate payments, increase liquidity, and improve Malaysia's RM2.4 trillion Islamic market while adhering to Shariah rules.
Projects must demonstrate tangible real-world benefits and technical feasibility without assuming that distributed ledger technology (DLT) is the only solution. BNM's approach balances innovation with caution, emphasizing proof, performance, and public trust. If successful, the roadmap could reshape Malaysia's financial infrastructure, bringing more efficiency to lending, asset management, and trade finance. It could also lay the groundwork for Sharia-compliant blockchain solutions, potentially making the country a leader in Islamic digital finance. By 2027, Malaysia could emerge as one of Southeast Asia's most forward-looking hubs for regulated tokenized finance.
