KUALA LUMPUR: Luno Malaysia Sdn Bhd is collaborating with Halogen Capital Sdn Bhd and Kenanga Investors Berhad to explore the use of a fully reserved, Ringgit-pegged stablecoin (UMYR) as an on-chain settlement instrument for tokenised money market funds.
The collaboration brings together three entities licensed by the Securities Commission Malaysia (SC): Luno, a registered Recognised Market Operator (Digital Asset Exchange), and Halogen Capital and Kenanga Investors, both Capital Markets Services Licence (CMSL) holders operating tokenised funds and mandates.
The initiative aims to demonstrate real-time Delivery-versus-Payment (DvP) settlement for fund subscriptions and redemptions, reducing the settlement windows that currently apply on conventional rails.
UMYR is proposed to be issued by a dedicated, ring-fenced issuance entity within the Luno group, and backed one-for-one by Ringgit held onshore in a segregated account with a regulated banking partner.
Under the proposed initiative – Luno (Issuer) will mint and burn UMYR on a strict 1:1 basis against Ringgit received or disbursed, manage institutional onboarding and wallet whitelisting, and provide daily reserve reconciliations supported by independent third-party reserve attestations while Halogen Capital and Kenanga Investors (Fund Partners) will participate as use-case fund managers, accepting UMYR for subscription and redemption settlements into their tokenised money market funds, while retaining sole responsibility for fund management, unit registry and investor obligations under their CMSL licences.
The initiative is designed as a closed-loop, business-to-business arrangement among whitelisted institutional participants. No retail clients will be onboarded, involved or served during the stablecoin initiative.
Luno country manager Scarlett Chai said: “With Malaysia’s digital asset ecosystem moving from foundational setup to institutional capability, infrastructure like UMYR is essential.
“By providing a 1:1 Ringgit-backed, fully segregated settlement instrument, we are showing how on-chain liquidity and real-time DvP settlement can operate seamlessly and responsibly within Malaysia’s existing regulatory framework alongside licensed industry leaders.”
Halogen Capital founder and CEO Hann Liew said: “As an early adopter of tokenised funds in Malaysia, we see settlement as the next piece of the puzzle, and testing UMYR as a dedicated settlement instrument aligns perfectly with our vision for modern fund management.
“Working within a regulated framework alongside SC-licensed partners ensures we can deliver faster, safer fund operations for institutional participants.”
Meanwhile, Kenanga Investors Bhd CEO Datuk Wira Ismitz Matthew De Alwis said: “This will further complement our asset tokenisation efforts.
“Paired with next-generation settlement infrastructure, we believe that the initiative will bring the industry much closer to unlocking the full benefits of tokenisation, building on the foundations we established with the launch of Myrra and Malaysia’s first tokenised funds.
“As we explore this opportunity, our fiduciary obligations remain unchanged, and we will continue to engage closely with regulators.”
The collaboration marks a step towards testing regulated digital asset infrastructure alongside Malaysia’s existing fund management ecosystem. Key features of the proposed initiative include faster settlement, full reserve backing and responsible innovation.
The initiative builds on Luno’s track record as the first digital asset exchange regulated by the SC, trusted by over one million Malaysians and offering the country’s largest SC-approved list of digital assets.
By bringing a fully reserved, ringgit-backed settlement instrument together with tokenised funds managed by licensed capital markets institutions, the Parties aim to show how blockchain settlement can operate within, rather than around, Malaysia’s regulatory framework.
The partnership was announced yesterday at the Luno Institutional Digital Asset Conference (LIDAC), Malaysia’s flagship digital asset conference for institutions.
The conference examined the next phase of Malaysia’s digital asset industry, spanning stablecoins, tokenisation, real-world assets, custody and compliance.
