Capital A, the parent company of AirAsia, and Standard Chartered Bank Malaysia have announced a joint initiative to explore introducing and trialing a ringgit-backed stablecoin.
On December 12, both firms signed a Letter of Intent to collaborate on this project, with support from Bank Negara Malaysia’s Digital Asset Innovation Hub.
The collaboration will allow Capital A to work within the bank’s regulatory sandbox to test the stablecoin for wholesale payments and settlements using its own business network, with Standard Chartered expected to handle issuance.
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The Digital Asset Innovation Hub, also known as DAIH, was established by Bank Negara Malaysia to promote responsible experimentation in digital assets. This allows projects such as the ringgit stablecoin pilot to be tested under set guidelines.
Participating companies are encouraged to test programmable payments and real-time settlement systems in an approved environment.
Both Standard Chartered and Capital A will evaluate the technical demands and business opportunities, as well as regulatory concerns, before moving forward with the adoption of a ringgit stablecoin.
The pilot will remain within the DAIH’s sandbox until a proper assessment of its security and efficiency is finished.
The partnership between these two established companies aims to keep Malaysia in step with changes as digital currencies and stablecoins become more common.
On December 8, Tunku Ismail Ibni Sultan Ibrahim, the crown prince of Johor, introduced a new stablecoin, RMJDT. How does the stablecoin work? Read the full story.
