BNM Unveils 3-Year Roadmap to Boost Malaysia’s Asset Tokenization and Digital Finance

Highlights:

• BNM introduced a three-year roadmap to expand asset tokenization and support Malaysia’s digital finance growth.
• The plan will test real-world use cases, including SME financing and Islamic smart contracts.
• Industry feedback will stay open until March 1, 2026.

Bank Negara Malaysia (BNM) has launched a three-year plan to promote asset tokenization in the financial system. The goal is to boost digital innovation in the country’s regulated markets. It will be implemented through the Digital Asset Innovation Hub (DAIH), which was set up earlier in 2025. BNM released a Discussion Paper on Asset Tokenization on Friday to collect feedback from both financial and technology sectors. Industry participants can submit their responses until March 1, 2026.

BNM and SC to Jointly Lead Regulatory Coordination

The roadmap outlines several proof-of-concept projects and live pilots that will test how tokenized financial instruments can improve efficiency and transparency. A key part of this initiative is the creation of an Asset Tokenization Industry Working Group (IWG), designed to coordinate among regulators, banks, and financial institutions.

The IWG will be co-led by BNM and the Securities Commission Malaysia (SC). Both institutions will assess legal and regulatory challenges to ensure compliance standards are upheld. During the initial phase, the group will focus on pilot projects that deliver measurable economic benefits to Malaysia’s financial sector.

Malaysia’s central bank has launched a three-year real-world asset tokenization initiative, establishing a Digital Asset Innovation Hub and an industry working group to explore use cases ranging from supply-chain finance to Islamic finance. The roadmap targets proof-of-concept…

— Wu Blockchain (@WuBlockchain) November 1, 2025

Phased Plan from 2025 to 2027

The roadmap contains three phases between the years of 2025 and 2027. In the year 2025, the BNM would collect feedback from the industry and establish work groups for the development of the use cases. In the year 2026, the BNM would conduct pilot programs and proof-of-concept. By the year 2027, the successful projects would scale up for larger trials based on their previous outcomes.

Focus on Real-World Use Cases

BNM emphasized that the plan does not include cryptocurrencies but focuses on tokenizing real-world assets. Potential applications include supply chain financing to enhance transparency and credit access for small and medium enterprises, and Islamic finance, where smart contracts could improve Shariah compliance and transaction automation.

Additional projects will explore programmable payments, green financing, and real-time cross-border settlements that can operate continuously without time restrictions. Each selected project must demonstrate practical benefits and technological feasibility within the existing financial infrastructure.

BNM Explores Tokenized Deposits and Stablecoins

BNM is also exploring the use of MYR-based tokenized deposits and stablecoins. The goal is to keep the “singleness of money” while making settlements faster and more secure. The bank also plans to connect these systems with wholesale central bank digital currency (CBDC) platforms to ensure smooth use between tokenized and traditional money.

Through this roadmap, Malaysia joins countries like Singapore and Hong Kong, where regulators are already using asset tokenization to upgrade their financial systems. In still another development, the Securities Commission Malaysia late last June proposed a new scheme wherein the approved trading exchanges will be allowed to list selected digital assets without the need for pre-approved listings, subject to the said assets having passed public security audits and having adhered to Financial Action Task Force (FATF) trading standards.