Editor’s Note
This article outlines Asia’s accelerating push into regulated digital assets, with Hong Kong poised to issue its first stablecoin licences in 2026 and Malaysia testing new tokenised financial instruments.
Major financial hubs in Asia are stepping up regulated digital asset efforts in 2026. Hong Kong is preparing to issue its first stablecoin licences as early as March, while Malaysia’s central bank begins testing ringgit-based stablecoins and tokenised deposits under its innovation hub.
Hong Kong is on track to grant its first batch of stablecoin issuer licences in March 2026 under the regulatory framework established by the Stablecoins Ordinance. The ordinance requires prospective issuers to meet strict standards for use cases, risk controls, anti-money-laundering measures, and reserve backing before they are authorized. Only a very limited number of licences is expected initially, as regulators focus on operational readiness and compliance.
In Kuala Lumpur, Bank Negara Malaysia’s Digital Asset Innovation Hub (DAIH) has onboarded three initiatives to test ringgit-denominated stablecoins and tokenised deposits for 2026. These pilots, led by Standard Chartered Bank Malaysia, Capital A, Maybank and CIMB, will explore wholesale payment and settlement use cases, including domestic and cross-border flows. The tests are conducted in a controlled environment to assess implications for monetary and financial stability and to inform policy direction.
Under the DAIH, participants are evaluating how stablecoins and digital deposit tokens might streamline settlement, enhance liquidity and modernise institutional payment infrastructure while preserving regulatory safeguards. Authorities in Malaysia plan to provide greater clarity on the use and policy framework for ringgit-linked digital assets by the end of 2026.
Together, these developments show a concerted regional trend toward formalising digital financial instruments. Hong Kong’s move to grant licences for regulated stablecoin issuance dovetails with Malaysia’s ground-level experimentation with tokenised money, reflecting an increasing willingness among Asian regulators to integrate digital asset technologies into mainstream financial systems under strict oversight.