Capital A, the Tony Fernandes-helmed investment holding company for the AirAsia travel group, has partnered with Standard Chartered Bank Malaysia to jointly explore the development and testing of a Malaysian ringgit-denominated stablecoin.

The two companies have signed a letter of intent ( LOI ) that will test an MYR-denominated stablecoin under the Digital Asset Innovation Hub ( DAIH ) of Bank Negara Malaysia ( BNM ), the country’s central bank. They are currently processing technical, regulatory, and commercial considerations under the sandbox.

This partnership marks Capital A’s first major foray into regulated digital assets. In 2022, the aviation company, formerly known as Air Asia group, underwent a name change to reflect the company’s new core business strategy as an investment holding company with a portfolio of synergistic travel and lifestyle businesses.

“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,” says Fernandes, Capital A’s chief executive officer.  

The partnership will leverage Standard Chartered’s institutional-grade infrastructure and financial expertise, while Capital A will provide an “extensive ecosystem” of companies to focus on wholesale digital asset use cases. 

High-impact use cases

Fernandes says an MYR stablecoin developed with Standard Chartered’s expertise and tested under BNM’s DAIH can unlock real potential for Capital A’s enterprise operations, spanning real-time settlements, better treasury management, and programmable flows that can improve how it serves its customers. 

“With Capital A being a multi-platform travel and digital group, we can bring practical, high-impact use cases at scale to Malaysians and the Asean region,” he says. 

Under the initiative, Standard Chartered Malaysia will serve as the issuer of the MYR stablecoin to conceptualize, test and deliver this innovation while Capital A and its ecosystem will jointly develop, test and potentially pilot real-world, wholesale use cases. 

Standard Chartered Malaysia CEO Mak Joon Nien says the initiative allows the bank to extend its expertise into the fast-evolving digital asset ecosystem while also supporting digital asset-linked products and providing institutional corporates such as Capital A with the assurance they require.

“Digital assets are a core part of the bank's strategy and entering the stablecoin sandbox with like-minded partners like Capital A reflects that same commitment in shaping the architecture of tomorrow's financial economy [while being] at the forefront of creating greater financial inclusion,” Mak says. 

The two companies say the initiative will support the country’s aspirations to pursue responsible innovation in digital assets. The partnership also acknowledges the potential of local-currency digital assets in strengthening domestic liquidity, enhancing operational efficiency, and enabling next-generation financial services.