Capital A and Standard Chartered Bank Malaysia have signed a letter of intent to test out and develop a stablecoin, as per an official press release. This partnership will be Capital A’s first move into digital assets, where the firm will be relying on the infrastructure of Standard Chartered.
Standard Chartered Malaysia will be the issuer for the stablecoin and will also be involved in the development, testing, and delivery of the product. The product will be backed on a one-to-one basis with the Malaysian ringgit.
“The future of finance is digital, and this LOI marks a significant milestone in our transformation from an aviation-centric group into a trusted, technology-led ecosystem,” said Capital A’s CEO.
“An MYR stablecoin developed with Standard Chartered’s expertise and tested under BNM’s DAIH can unlock real potential for our enterprise operations – spanning real-time settlements, better treasury management, and programmable flows that ultimately improve how we serve our customers.”
While the stablecoin is still considered an emerging asset class, it has a substantial share of large-cap companies such as Tether, Circle Internet Group, and Ethena, most of which are pegged to the U.S. dollar.
Capital A will also be competing with earlier entrants who have other products and services as their main focus, such as PayPal’s stablecoin PYUSD.
Standard Chartered Malaysia’s CEO Mak Joon Nien said that digital assets are a core part of the company’s strategy.
“This initiative allows us to extend our expertise into the fast-evolving digital asset ecosystem and support digital asset-linked products, providing institutional corporates with the assurance they require,” he also said.