Malaysia Central Bank Launches Three-Year RWA Tokenization Roadmap

Bank Negara Malaysia (BNM), the central bank of Malaysia, has unveiled a new three-year roadmap focused on real-world asset (RWA) tokenization. This initiative marks a significant step toward integrating blockchain technology into the country's financial system, with the establishment of a Digital Asset Innovation Hub and an industry working group to drive the project forward.

The roadmap outlines a phased approach, with proof-of-concept and pilot programs scheduled to begin in 2026, followed by expanded trials in 2027. It targets practical use cases ranging from supply-chain finance to Islamic finance, emphasizing a balance between innovation and regulatory stability. BNM has set clear milestones to ensure the initiative is both ambitious and measured, avoiding disruptions to legal frameworks.

In its report, the central bank emphasized that tokenization must serve tangible economic purposes, guided by three core principles. First, projects must deliver measurable real-world benefits, with teams required to demonstrate value rather than assume it. Second, distributed ledger technology (DLT) should not be treated as a standalone solution; traditional methods like APIs might still be more effective in some cases. Third, all proposed tokenization efforts must be technically feasible with current capabilities, with scope for more complex applications as the industry matures.

BNM is actively seeking industry collaboration, inviting banks, fintech firms, and blockchain developers to submit ideas for potential use cases by March 1, 2026. The Digital Asset Innovation Hub will serve as a testing ground for regulator-innovator partnerships, aiming to strengthen Malaysia's digital asset regulatory framework and foster local expertise in blockchain-based finance.

If successful, this roadmap could reshape Malaysia's financial infrastructure by improving efficiency in lending, asset management, and trade finance. It also positions the country to become a leader in Sharia-compliant blockchain solutions, potentially establishing Malaysia as a top hub for regulated tokenized finance in Southeast Asia by 2027.