From AirAsia to Blockchain: Capital A and Standard Chartered’s Stablecoin Play

Capital A and Standard Chartered Malaysia have signed a letter of intent to jointly explore the development of a ringgit-backed stablecoin. The project will be tested under Malaysias Digital Asset Innovation Hub, a regulatory sandbox launched by Bank Negara Malaysia in June to support experimentation in tokenisation and blockchain finance.

Under the arrangement, Standard Chartered Malaysia is expected to act as the issuer of the stablecoin, while Capital A and its network of ecosystem partners will focus on designing and testing use cases. The pilot will target institutional and enterprise applications rather than retail users, with a focus on areas such as payments, settlements and capital market processes.

For Capital A, the initiative marks its first direct involvement in a regulated digital asset project. The company has framed the effort as part of a broader goal to support Malaysias financial development and long-term economic ambitions. Both firms see stablecoins as a potential building block for modernising how money moves across the economy.

This partnership comes amid rising interest in stablecoins at the highest levels of Malaysian leadership. Earlier this week, the Regent of Johor, Tunku Ismail Ibni Sultan Ibrahim, announced the launch of RMJDT, a ringgit-backed stablecoin issued on Zetrix. The blockchain also underpins Malaysias national blockchain infrastructure, signalling strong state-level backing for digital asset initiatives.

Bank Negara Malaysia has stepped up its activity in this area. Last month, the central bank released a three-year roadmap to test asset tokenisation in live environments. It also formed an Asset Tokenisation Industry Working Group to coordinate efforts between banks, fintech firms and regulators. These initiatives are designed to allow controlled testing while identifying legal, operational and regulatory risks before wider adoption.

Malaysias approach reflects a broader reassessment of its digital asset policy. Since early 2025, government officials have been exploring a more structured national crypto strategy, balancing innovation with financial stability and consumer protection.

Regulatory reform is also gaining momentum. The Securities Commission Malaysia has proposed a major update to its Digital Asset Exchange framework following a sharp rise in crypto trading volumes, which reached RM13.9 billion in 2024. The proposed changes aim to speed up token listings, strengthen governance standards and improve investor safeguards.

Under the new proposals, certain tokens could be listed on regulated exchanges without prior approval, provided they meet set criteria. While this would reduce delays, it would also place greater responsibility on exchange operators to manage risks and ensure compliance. The regulator has also signalled tougher rules around client asset protection, risk management and financial strength.

Despite the push for innovation, authorities continue to stress caution. Cryptocurrencies remain outside legal tender status, and enforcement against unlicensed platforms such as Huobi and Bybit is still intact. Together, these moves show a country attempting to build a credible, regulated digital asset ecosystem without losing control of financial stability.