Malaysia launches roadmap to test blockchain-based asset tokenization

Bank Negara Malaysia has launched a three-year initiative to test how blockchain-based asset tokenization can be used to modernize key aspects of the country’s financial system, including SME financing and Islamic capital markets. The plan, announced a couple of days ago, builds on the central bank’s existing Digital Asset Innovation Hub and will run through 2027.

The program will involve banks, fintech firms and blockchain developers working within a regulated sandbox to pilot real-world use cases. “This is not about adopting technology for its own sake. Each project must show clear economic value,” the central bank said in its discussion paper outlining the roadmap.

The initiative focuses on solving structural challenges such as Malaysia’s RM101 billion ($21.5 billion) SME financing gap, where smaller firms often struggle to secure credit despite strong demand. Under one proposed model, large companies would issue tokenized invoice receivables that smaller suppliers could use as collateral or payment, accelerating cash flow and reducing settlement delays.