Standard Chartered Bank Malaysia and Capital A are jointly exploring a ringgit stablecoin project. The pilot is set within the central bank’s Digital Asset Innovation Hub.
Standard Chartered Bank Malaysia and Capital A, the parent company of AirAsia, have signed a Letter of Intent. This document codifies a plan to collectively study a stablecoin pegged to the Malaysian local currency, the ringgit. This move is a big step towards the development of local currency digital assets.
Focus is on Wholesale Use Cases in Regulated Sandbox
The central bank will direct the project’s development and testing. Bank Negara Malaysia (BNM) manages the Digital Asset Innovation Hub (DAIH). The DAIH serves as a regulatory sandbox. It provides the capacity to test innovations in the financial sector in a closely supervised environment.
The future of finance goes digital with Capital A 🤝 Standard Chartered Malaysiahttps://t.co/1kAliG4y2E
— AirAsia (@airasia) December 12, 2025
This initiative is Capital A’s first major foray into regulated digital assets. They will take advantage of Standard Chartered’s infrastructure at institutional grade and financial expertise. Capital A will take advantage of its expansive ecosystem of travel and digital services.
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Standard Chartered Malaysia would be the issuer of the MYR stablecoin. Its job is to conceptualize, test, and deliver this innovation. Capital A and its ecosystem will collaboratively develop, test and potentially pilot real-world use cases. The stablecoin is targeted mainly for wholesale digital assets. The focus is on institutional applications rather than the retail market.
This initiative is beneficial in the wake of Malaysia’s aspirations. The country aims at responsible innovation in digital assets. Local currency digital assets can help to build domestic liquidity. They can also improve operational efficiency and support next-generation financial services.
Mak Joon Nien, Standard Chartered Malaysia’s CEO, highlighted the bank’s commitment. He said digital assets are an essential component of the bank’s strategy. Furthermore, he observed that entry to the stablecoin sandbox speaks to this commitment. This is to influence the architecture of the financial economy of tomorrow.
Initiative Aligns with Malaysia’s Digital Ambitions
The BNM’s DAIH is an important platform for co-creation. It is enabling BNM and the industry to test innovative solutions. This will inform the responsible development of digital asset innovations. It also informs the crafting of an appropriate regulatory environment.
The proposed initiative is in line with the mission of Capital A. The firm aims to provide smarter, faster and connected experiences. This will enable the Group’s capacity to provide value to customers in a more efficient and innovative way.
Capital A is in the process of changing from an aviation-centric group. It is moving towards being a technology-led business. This stablecoin project is a central component to that change. It taps into the company’s wide ecosystem for practical applications.
Both Capital A and Standard Chartered Malaysia will now be doing further assessments. This involves technical, regulatory, and commercial considerations. This work will be done within the regulatory framework of BNM. As a result, the collaboration offers a strong combination of financial stability as well as high-volume commercial use cases.