Malaysia pushes for tokenization: Central Bank launches roadmap for pilot tests in 2026

The Central Bank of Malaysia has launched a roadmap to experiment with asset tokenization in 2026 and develop a safe and sustainable regulatory framework for this innovation.

Recently, the Central Bank of Malaysia (CBM) released a discussion paper that marks the beginning of a new phase in the country's financial system: the formal exploration of asset tokenizationThe proposal, which pilot tests will begin in 2026It seeks to establish a tokenized financial ecosystem that is safe and sustainable. 

Beyond being a technical proposal, the BNM document invites all actors in the sector to actively participate in the joint construction of a regulatory and operational guide.

Malaysia is driving tokenization and moving towards the financial future

Asset tokenization involves converting rights to an asset into a digital token recorded on a blockchain. This technology has gained global popularity for its ability to improve efficiency, transparency, and access in financial markets. In this context, Malaysia is positioning itself as a country that wants to move forward in an orderly and collaborative manner with the adoption of this innovation.

Through this discussion paper, the Central Bank seeks to gather opinions from society and the financial sector on the most relevant aspects of tokenization. Therefore, the bank requests that comments include clear arguments, relevant data, or concrete examples to help refine the regulatory framework being developed. 

This is, therefore, an open invitation that seeks to foster a token-based financial development that is inclusive, transparent and well supported by the community, ensuring that this innovation is deployed responsibly and with a long-term vision.

Pilot tests being prepared for 2026

The roadmap proposed by the BNM envisions a collaborative approach to exploring tokenization, recognizing that its implementation requires the active participation of banks, asset issuers, technology developers, regulators, and consumers. The goal is to collaboratively build a framework that will allow for safe pilot testing in 2026., with a view to eventual wider adoption in the Malaysian financial system.

El Valid identity document It highlights that tokenization is not limited to a single asset type, but has broad potential. It can be applied to everything from traditional capital market products to debt instruments, real estate, and other alternative assets. To facilitate this transition, it is proposed that issuers maintain accessible ownership records both on and off the blockchain, thus ensuring a gradual and controlled evolution toward decentralized models without losing control or security.

Furthermore, it is proposed that the public blockchains used in these processes must comply with strict safeguards to mitigate cybersecurity risks and ensure data integrity. This measure seeks to balance innovation with the protection of the financial system and consumers.

The Malaysian Securities Commission has also launched a parallel public consultation to explore how distributed ledger technology (DLT) can be integrated into the country's capital markets. This initiative complements the BNM's efforts and reinforces the vision of a tokenized financial ecosystem spanning multiple market segments.

Malaysia promotes a participatory approach to regulating tokenization

One of the document's highlights is the explicit invitation to participate in the regulatory design process. The National Bank of Malaysia (NBM) has issued a clear call for comments and suggestions on key aspects of the strategic plan, seeking not only to validate specific points but also to identify opportunities to strengthen and adapt the regulatory framework to evolving market dynamics.

The institution understands that proof-of-concept trials will be an essential step in verifying how tokenization will function in practice within the Malaysian environment. These trials will assess interoperability between different platforms, legal protections for token holders, and the real-time oversight capabilities of the authorities. Experts believe this approach by the bank to blockchain innovation reflects its growing commitment to building a robust and reliable digital ecosystem where innovation and security go hand in hand.

Current economic prospects highlight significant growth potential for the blockchain tokenization market. By 2030, the market for digitized assets in Malaysia could reach a value of nearly US$43.000 billion, a figure that opens a valuable door for small and medium-sized enterprises (SMEs) to access global financing. This opening can transform liquidity capacity and the attraction of international capital, solidifying Malaysia's position as a dynamic player in the global digital economy.

Paving the way for the new digital economy

The roadmap presented by the Reserve Bank of Malaysia (RBM) represents a significant step in modernizing the national financial system through asset tokenization. With a focus on cooperation and regulation, the RBM aims to ensure this transformation is secure, sustainable, and aligned with market needs.

In this way, Malaysia reinforces its commitment to a financial system that evolves responsibly, responding to the challenges and opportunities of the digital environment.