Malaysian royal launches ringgit-backed stablecoin for payments

[KUALA LUMPUR] The eldest son of Malaysia’s billionaire king is launching a ringgit-backed stablecoin in the latest example of crypto tokens designed for payments expanding across the Asia-Pacific region.

Bullish Aim, chaired and owned by Tunku Ismail Sultan Ibrahim, the son of Sultan Ibrahim Iskandar of the Johor royal family, unveiled a stablecoin called RMJDT that’s pegged to the Malaysian ringgit. It will be backed by local-currency cash deposits and short-term Malaysian government bonds, people with knowledge of the matter said, asking not to be identified.

“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).

Private tech companies across Asia have forged ahead with plans to launch stablecoins this year, with Hong Kong emerging as one hotspot after it rolled out a new set of rules governing issuers in July. Some of the impetus comes from the US, which adopted regulations for tokens pegged to the US dollar in July.

Malaysia, too, has been warming to crypto. Prime Minister Anwar Ibrahim said in April that he welcomed continued discussion with agencies including the securities regulator, Bank Negara Malaysia and the Ministry of Digital to “explore ways to facilitate and promote responsible innovation” in the space.

RMJDT will be issued on Zetrix, a blockchain developed by Malaysian company Zetrix AI, the people said. Zetrix’s technology underpins an initiative called the Malaysian Blockchain Infrastructure, a government-backed platform for digital services which was unveiled in April.

A representative for Ismail had no comment. Johor’s Royal Press Office did not respond to a request for comment, while Zetrix declined to comment.

Ismail is the regent of Malaysia’s southernmost state of Johor while his father serves a five-year term as Malaysia’s king.

Bullish Aim also plans to establish a so-called digital-asset treasury company through an initial RM500 million (S$157.6 million) investment in Zetrix tokens, according to the people.

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The Zetrix coin is trading at around US$12.60, down from an all-time high of over US$20 about a year ago, according to CoinGecko data. BLOOMBERG