Kuala Lumpur, November 2025 - Malaysia has officially entered the global race toward asset tokenization with a three-year national roadmap aimed at integrating blockchain-based financial solutions into its economy. The initiative, led by Bank Negara Malaysia (BNM) and the Securities Commission (SC), seeks to promote responsible innovation while strengthening monetary stability, user protection, and financial integrity.

BNM’s newly published discussion paper outlines a phased approach to developing tokenized financial services through collaboration between regulators, banks, and technology companies. The first phase focuses on establishing a Digital Asset Innovation Hub, which will coordinate pilot projects and assess regulatory gaps. Live testing and proofs of concept are expected to begin in 2026, continuing into 2027.

Key focus areas include supply chain finance, liquidity management, programmable payments, sustainable finance, and notably, Islamic financial applications such as tokenized sukuk and green assets. BNM highlights tokenization’s potential to enhance transparency, efficiency, and accessibility while supporting Malaysia’s sustainability and Islamic finance objectives.

While supporting blockchain adoption, the central bank stresses that it does not endorse decentralized cryptocurrencies, and insists on robust KYC and AML frameworks. Permissioned or hybrid blockchain models will remain the preferred structure for regulatory compliance and data integrity.

The Digital Ministry has reaffirmed its commitment to the National Blockchain Roadmap (2022), establishing a National Blockchain Policy Task Force of experts and policymakers to oversee implementation. According to Digital Minister Gobind Singh Deo, blockchain and tokenization will enhance government transparency, strengthen enterprise security, and prepare the workforce for future digital opportunities.

By combining Islamic finance leadership with emerging digital asset technologies, Malaysia aims to position itself as a regional hub for tokenized finance. If successful, the initiative could serve as a model for other Muslim-majority economies seeking to modernize their capital markets through Sharia-compliant digital innovation.