Standard Chartered, AirAsia parent to test ringgit stablecoin in Malaysia

Standard Chartered Malaysia and AirAsia parent Capital A plan to issue and test a ringgit-pegged stablecoin for wholesale applications.

Standard Chartered Bank Malaysia and Capital A, the parent company of AirAsia, plan to jointly explore a stablecoin pegged to Malaysia’s local currency, the ringgit.

In a statement Friday, the bank’s Malaysian arm and Capital A said they signed a letter of intent to explore a ringgit-pegged stablecoin under the country’s Digital Asset Innovation Hub, an initiative announced by Bank Negara Malaysia (BNM) in June.

This is Capital A’s first interaction with the regulated digital asset space. The initiative will rely on Standard Chartered’s infrastructure and financial expertise, as well as Capital A’s ecosystem, to pilot the stablecoin in a wholesale fashion, rather than focusing on the retail market.

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