CIMB seeks to advance tokenised financial services


CIMB Group Holdings group CEO Novan Amirudin.

KUALA LUMPUR: CIMB Group Holdings Bhd (CIMB) says it is committed to developing tokenised financial services, encompassing tokenised assets, tokenised settlement and next-generation payment rails, in support of Malaysia’s national agenda to broaden adoption of tokenisation across the financial ecosystem.

In a statement, CIMB said various initiatives will be rolled out in phases through the Securities Commission Malaysia’s (SC) industry pilot programme on securities tokenisation, while engaging Bank Negara Malaysia (BNM) to seek admission into the Digital Asset Innovation Hub.

The banking group said, as a key near-term milestone, it has committed to Khazanah Nasional Bhd and SC’s tokenised sukuk issuance pilot project, supporting multiple workstreams covering structuring, execution through to custody arrangements and full lifecycle servicing.

“The pilot workstreams are expected to progress through next year with phased capability build-out aligned to regulatory and operational readiness,” it added.

CIMB group chief executive officer Novan Amirudin said the group is strengthening its digital and tokenisation capabilities to address real opportunities and democratise market access across the banking and financial ecosystem, in line with its purpose of advancing customers and society and its Forward30 strategic plan.

“Well-designed asset tokenisation offers several potential advantages that could fundamentally transform the industry, especially in terms of accessibility, efficiency and transparency across payments and wholesale banking.

“We will begin with practical, use-case-driven applications, implemented within regulatory frameworks and underpinned by strong governance and controls,” he said, adding that CIMB aims to scale innovation responsibly and deliver tangible value to the market through collaboration with Khazanah,” he said.

CIMB in Malaysia has issued approximately RM40bil in conventional bonds and Islamic Sukuk over the past three years alone, according to the statement.

CIMB said, as capabilities around digital assets mature, it intends to progressively issue a part of future funding requirements in tokenised bond and sukuk formats.

“The group’s development of tokenised assets will focus on raising efficiency and connectivity across payments and capital markets, while advancing the use of digital asset-based instruments integral to a modernised digital financial market infrastructure. — Bernama

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