Malaysia has taken another step towards digitalising its financial markets after CIMB Group completed a pilot testing the settlement of tokenised sukuk using tokenised deposits in a controlled environment.
The pilot involved a RM1.68 billion issuance under CIMB Islamic Bank Berhad’s existing RM10 billion Senior Sukuk Wakalah Programme, with maturities ranging from five to 15 years. Of the total issuance, RM1.38 billion was represented in tokenised form and subscribed by 12 institutional investors while RM300 million remained in traditional sukuk form.
The initiative was conducted under Bank Negara Malaysia’s Digital Asset Innovation Hub, which allows financial institutions to test digital asset applications in a controlled setting. CIMB also engaged with the Securities Commission Malaysia on tokenised capital market products.
Finance Minister II Senator Datuk Seri Amir Hamzah Azizan said the pilot showed how Malaysia could build on its Islamic finance and capital market strengths as financial infrastructure becomes increasingly digital.
“This pilot is important because it moves tokenisation beyond theory and tests how digital financial assets and commercial bank money can work together in a controlled environment,” he said.
CIMB Group Chief Executive Officer Novan Amirudin said the pilot provided practical insights into the operational, legal and regulatory requirements involved in tokenised financial transactions.
“The potential benefits are practical. Greater automation and faster settlement could reduce friction in financial transactions, improve liquidity management and increase capital efficiency,” he said.
The pilot will also provide insights into potential future applications including coupon distribution, secondary-market transfers and sukuk redemption, while retaining the underlying economic and Shariah structure of the instrument.
