Johor Regent Tunku Ismail launches ringgit-backed stablecoin RMJDT
RMJDT aims to enhance the ringgit’s international use in cross-border trade settlements and act as a catalyst for attracting foreign direct investment into Malaysia.
Johor Regent Tunku Ismail Sultan Ibrahim (centre) witnessing the exchange of the agreement between Bullish Aim Sdn Bhd managing director Lion Peh (left) and Zetrix co-founder TS Wong. (Photo: Zetrix)
KUALA LUMPUR: Johor Regent Tunku Ismail Sultan Ibrahim has launched a ringgit-backed stablecoin, in what is described as the latest example of crypto tokens designed for payments that is gaining ground across the region.
Bullish Aim Sdn Bhd, chaired and owned by Tunku Ismail, unveiled the stablecoin called “RMJDT” which is pegged to the Malaysian ringgit.
The token will be backed by local currency cash deposits and short-term Malaysian government bonds, according to sources familiar with the matter who requested anonymity, reported Bloomberg.
A stablecoin is a cryptocurrency designed to have a stable value by being pegged to an asset such as fiat currency.
“Our vision is for this stablecoin to become the standard for crypto-based payments in Malaysia - empowering businesses, consumers and innovators with a faster, safer and more efficient way to transact,” Lion Peh, Bullish Aim’s managing director, said in a statement on Tuesday (Dec 9).
RMJDT will be issued on Zetrix AI, a blockchain developed by Malaysian company Zetrix AI Bhd.
Zetrix describes itself as a layer-1 public blockchain that supports smart contracts and delivers privacy, security and scalability.
Launched under a regulated sandbox framework, RMJDT is designed to boost the international use of the ringgit in cross-border trade settlements and act as a catalyst for attracting foreign direct investment into Malaysia, Zetrix said in a statement.
“The (RMJDT) initiative aligns with global tokenisation trends and directly supports Malaysia’s Digital Asset National Policy.”
Private technology firms across Asia have forged ahead with plans to launch stablecoins this year, with Hong Kong emerging as a hotspot following the introduction of its regulatory guidelines for issuers in July.
Malaysia also has become increasingly receptive toward cryptocurrency.
In April, Prime Minister Anwar Ibrahim said he welcomed ongoing talks with agencies such as the Securities Commission, Bank Negara Malaysia and the digital ministry to “explore ways to facilitate and promote responsible innovation” in the sector.
In October, Bank Negara Malaysia released a discussion paper detailing its proposed approach to explore asset tokenisation in the Malaysian financial system, aiming to gather feedback that will shape the central bank’s regulatory and developmental framework for tokenised financial services.
According to local media, Zetrix’s technology underpins an initiative called the Malaysian Blockchain Infrastructure, a government-backed platform for digital services launched in April.
