Malaysia’s digital asset ambitions are drawing in legacy aviation and banking players as interest grows in local-currency stablecoins.
Capital A, the operator of AirAsia, and Standard Chartered Bank Malaysia have agreed to explore the development of a ringgit-backed stablecoin, adding momentum to the country’s regulated crypto experimentation.
The move comes days after a Malaysian royal announced plans for a similar token, underscoring rising institutional attention on ringgit-denominated digital currencies.
The initiative will be tested within a regulatory sandbox linked to Bank Negara Malaysia, signalling a cautious but coordinated approach to digital finance innovation in Southeast Asia’s third-largest economy.
Deal framework
Capital A and Standard Chartered Bank Malaysia signed a letter of intent to jointly develop and test the stablecoin, according to a statement released on Friday.
The project will be conducted through a digital-asset innovation hub overseen by Bank Negara Malaysia, placing the effort within an official regulatory framework.
Under the arrangement, Standard Chartered Malaysia is expected to act as the issuer of the ringgit-backed stablecoin.
Capital A may support the initiative by piloting real-world wholesale use cases, allowing the partners to test how the token could function in controlled commercial environments.
The collaboration positions both companies at the intersection of traditional finance and regulated digital assets at a time when Malaysian authorities are signalling openness to experimentation without relaxing oversight.
Regulated digital assets
For Capital A, the agreement represents its first move into regulated digital assets.
The group, best known for its aviation roots through AirAsia, has been repositioning itself as a broader technology-led business with interests beyond airline operations.
The stablecoin exploration aligns with this strategy, allowing Capital A to participate in financial infrastructure development rather than consumer-facing crypto trading.
By focusing on wholesale use cases within a regulatory sandbox, the initiative avoids the volatility and compliance risks often associated with unregulated digital tokens.
For Standard Chartered Malaysia, the role of issuer places it squarely within its existing expertise in banking, payments, and compliance, while extending its presence into tokenised forms of fiat currency.
Bank Negara oversight
The project will be housed within a digital-asset innovation hub overseen by Bank Negara Malaysia, the country’s central bank.
This structure allows participants to test new financial products under supervisory guidance, reducing systemic risk while enabling innovation.
Malaysia has previously taken a measured stance on crypto assets, permitting licensed exchanges and pilot projects while maintaining strict controls.
A ringgit-backed stablecoin tested under central bank oversight fits within this incremental approach, particularly as global regulators scrutinise stablecoins more closely.
The timing is notable, coming shortly after a Malaysian royal announced the launch of a similar ringgit-linked token, highlighting parallel interest across institutional and quasi-institutional actors.
Capital A restructuring
The stablecoin initiative also coincides with a major corporate restructuring at Capital A.
The group is in the process of disposing of its AirAsia aviation business to sister company AirAsia X Bhd.
As a result, Capital A is set to become a non-aviation holding company once the exercise is completed.
This transition provides context for its entry into digital assets, as the company looks to redefine its identity beyond airlines.
Participation in a regulated stablecoin pilot offers exposure to financial technology without departing from compliance-driven partnerships.
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