Capital A Berhad (Capital A) and Standard Chartered Bank Malaysia Berhad (Standard Chartered Malaysia) announced the signing of a Letter of Intent (LOI) to jointly explore the development and testing of a Ringgit (MYR)-denominated stablecoin through the Digital Asset Innovation Hub (DAIH) under Bank Negara Malaysia (BNM). The initiative marks Capital A's first major foray into regulated digital assets, leveraging Standard Chartered's institutional-grade infrastructure and financial expertise and Capital A's extensive ecosystem of companies to focus on wholesale digital asset use cases. Under this initiative, Standard Chartered Malaysia would serve as the issuer of the MYR stablecoin to conceptualise, test and deliver this innovation.
Capital A and its ecosystem will jointly develop, test and potentially pilot real-world wholesale use cases. This initiative supports the aspirations of Malaysia to pursue responsible innovation in digital assets by acknowledging the potential of local-currency digital assets in strengthening domestic liquidity, enhancing operational efficiency and enabling next-generation financial services. BNM's DAIH serves as a platform for BNM and the industry to co-create and test innovative solutions, with a view to inform responsible development of.
Both Capital A and Standard Chartered Malaysia will now undertake further assessment of technical, regulatory and commercial considerations under BNM's DAIH. This proposed initiative aligns both Capital A's mission to deliver smarter, faster and more connected experiences across its ecosystem, strengthening the Group's ability to serve customers and partners with greater efficiency and innovation and Standard Chartered's strategy of Digital Assets being an important and permanent part of the future of financial services.
