KUALA LUMPUR: Capital A Bhd
and Standard Chartered Bank Malaysia Bhd will jointly explore the development and testing of a ringgit-denominated stablecoin through the Digital Asset Innovation Hub (DAIH) under Bank Negara Malaysia (BNM).
In a joint statement, Capital A and Standard Chartered said they have signed a letter of intent (LOI), marking Capital A’s first major move into regulated digital assets by leveraging Standard Chartered’s institutional infrastructure and Capital A’s broad ecosystem to develop wholesale digital asset use cases.
Capital A chief executive officer (CEO) Tony Fernandes said the ringgit-stablecoin developed with Standard Chartered’s expertise and tested under BNM’s DAIH can unlock real potential for its enterprise operations -- spanning real-time settlements, better treasury management, and programmable flows that ultimately improve how the carrier serves its customers.
"With Capital A being a multi-platform travel and digital group, we can bring practical, high-impact use cases at scale to Malaysians and the ASEAN region,” he said.
Standard Chartered Malaysia CEO Mak Joon Nien said this initiative allows the bank to extend its expertise into the fast-evolving digital asset ecosystem and support digital asset-linked products, providing institutional corporates with the assurance they require.
Meanwhile, under this initiative, Standard Chartered Malaysia would serve as the issuer of the ringgit-stablecoin to conceptualise, test, and deliver this innovation, the statement said.
It said Capital A and its ecosystem will jointly develop, test and potentially pilot real-world wholesale use cases.
BNM’s DAIH serves as a platform for the central bank and the industry to co-create and test innovative solutions, with a view to informing the responsible development of digital asset-related innovations and the formulation of an appropriate regulatory environment to support such initiatives. - Bernama
