Malaysia is actively promoting financial digitalization and innovation, and collaborations between businesses and international banks are gradually becoming a key driver of the upgrading of Malaysia's financial infrastructure. Capital A and Standard Chartered Bank Malaysia recently signed a letter of intent to jointly explore the development and testing of a stablecoin denominated in Malaysian Ringgit (MYR) within the framework of Bank Negara Malaysia's Digital Asset Innovation Centre (DAIH), laying the foundation for the next phase of innovation in the local and regional financial system.
Capital A started with low-cost airlines and has actively expanded into the financial sector.
This collaboration marks Capital A's first major foray into the regulated digital asset space. As a diversified conglomerate that originated in the aviation industry and has recently expanded into fintech, logistics, and digital services, Capital A will leverage its vast corporate ecosystem, combined with Standard Chartered's extensive global banking experience and institutional-grade infrastructure, to focus on wholesale-level digital asset applications rather than retail speculation.
Standard Chartered Bank Malaysia is preparing to issue the MYR stablecoin.
According to the current plan, Standard Chartered Bank Malaysia will serve as the issuer of the MYR stablecoin, responsible for the product's conceptual design, technical testing, and actual delivery. Capital A and its subsidiaries will participate in the joint development and testing of application scenarios, and, subject to regulatory approval, assess the feasibility of future trials. Both parties hope to explore the efficiency advantages of stablecoins in corporate settlements, fund management, and cross-system payments through real-world scenario validation.
The core objective of this plan is to support Malaysia in promoting "responsible innovation" in the digital asset sector. Compared to highly volatile crypto assets, stablecoins denominated in local currencies are seen as a potential tool to improve domestic liquidity, reduce settlement costs, and enhance operational efficiency within a compliant framework. They also contribute to the development of more programmable next-generation financial services.
The Digital Asset Innovation Centre (DAIH) of Bank Negara Malaysia is developing the regulatory environment.
The Digital Asset Innovation Centre (DAIH) established by Bank Negara Malaysia provides a platform for testing and dialogue, allowing regulators and industry to jointly design and validate innovative solutions in a controlled environment. This helps accumulate policy and practical experience, providing a basis for developing a more comprehensive regulatory system in the future and ensuring a balance between financial innovation and risk management.
Capital A CEO Tony Fernandes stated that the future of finance is inevitably digital, and this signing of the letter of intent is not only a technological collaboration but also a significant milestone in the group's transformation. He pointed out that by testing the Ringgit stablecoin under the DAIH framework, Capital A has the opportunity to achieve instant settlement, more efficient fund allocation, and programmable cash flow in its business operations, thereby improving how it serves customers and partners.
Standard Chartered Bank Malaysia CEO Mak Joon Nien emphasized that Standard Chartered has been deeply rooted in Malaysia for over 150 years, consistently supporting the country's development through innovation. Digital assets have become an important part of Standard Chartered's global strategy, and this collaboration with Capital A to enter the stablecoin sandbox demonstrates the bank's long-term commitment to participating in and shaping the future financial architecture and promoting a more inclusive financial system.
Looking ahead, Capital A and Standard Chartered Bank Malaysia will conduct further in-depth assessments of technological feasibility, regulatory requirements, and business models under the DAIH mechanism. Overall, this collaboration not only reflects the changing roles of businesses and banks in the digital asset space but also highlights Malaysia's attempt to pave the way for upgrading local and regional financial infrastructure through regulated innovation experiments.
Capital A Introduction
Capital A is an investment holding company with diversified airline and travel businesses that leverage data and technology to drive growth. Its core businesses include low-cost carrier AirAsia, Capital A Aviation Services Group, AirAsia MOVE (formerly the AirAsia Super App), fintech company BigPay, logistics company Teleport, and brand development company Abc.
This article, which discusses AirAsia's parent company Capital A's collaboration with Standard Chartered Bank in Malaysia on the MYR stablecoin issuance plan, first appeared on ABMedia, a ABMedia .
